Chapter 6 True/False And Multiple Choice

Question 1

T/F

You should always pay the collectors first

Answer 1

False

You should pay your necessities first

Question 2

T/F

The best way to deal with debt is with a plan

Answer 2

True

Question 3

T/F

The federal fair debt collection practices act allows creditors to call between 7am and 10pm

Answer 3

False

8am and 9pm

Question 4

T/F

If you are a victim of identity theft, you are only responsible for the first $250 of debt

Answer 4

False

You are responsible for nothing

Question 5

T/F

You should check your credit report every year

Answer 5

True

Question 6

Passed in 1977 to protect you from unfair collectors

Answer 6

FFDCPA

Question 7

Which of the following is one of the four walls

1) Cable televisión
2) Mortgage payment
3) Cell phone bill
4) Designer jeans

Answer 7

2) mortgage payment

Question 8

It is a good idea to check your credit report every….

Answer 8

Year

Question 9

Which of the following is not a way to build your FICO score

a) pay cash for all purchases
b) get a personal loan from the bank
c) Sign up and use credit cards

Answer 9

A

Question 10

The pro rata payment includes which of the following elements

A) repayment of debt as soon as possible
B) using the four walls to set priorities
C) giving a percentage of debt to each creditor
D) all the above

Answer 10

D

Question 11

The fastest growing group of ppl filing for bankruptcy are…

Answer 11

Under 25

Question 12

What is the best way to deal with collectors

Answer 12

Get everything in writing that has to do with money orders and don’t give them electronic access to a money account

Question 13

Describe some common tactics used by a collector and why do they use these

Answer 13

They will use harassment, laying and friendliness bc they will do anything to get the money

Question 14

Refute the myth” I need to build my credit score.”

Answer 14

The FICO score is an I lobe debt score and is not a measure of winning financially