Dave Ramsey - Unit 4 Flashcards
If you tell a lie or spread a ______ often enough, loud enough, and long enough, the myth becomes accepted as ______.
myth; truth
Debt has been ______ to us in so many forms and so aggressively since the 1960’s that to even imagine living without it requires a complete ______ ______
marketed; Paradigm Shift
_ If I loan money to a friend or relative, I will be ______ them
Myth; helping
_ The relationship will be strained or ______
Truth; destroyed
_ By ______ a loan, I am helping out a friend or relative
Myth; co-signing
_ The bank requires a cosigner because the person isn’t likely to ______ . So, be ready to pay the loan and have your credit damaged because you are on the loan.
Truth; repay
_ Cash advance, rent-to-own, title pawning, and tote-the-note car lots are needed ______ for lower income people to get ahead
Myth; services
_ These are horrible, ______ rip-offs that aren’t needed and benefit no one but the owners of these companies
Truth; greedy
_ Playing the lottery and other forms of gambling will make me ______ .
Myth; rich
_ The lottery is a tax on the poor and on people who can’t do ______ .
Truth; math
_ Car ______ are a way of life, and you’ll always have one.
Myth; payments
_ Staying away from car payments by driving reliable used cars is what the typical millionaire does. That is ______ they become millionaires
Truth; how
_ ______ your car is what sophisticated financial people do. You should always lease things that go down in value. There are tax advantages
Myth; Leasing
_ Consumer Reports, Smart Money Magazine, and a good calculator will tell you that the car lease is the most ______ way to finance and operate a vehicle.
Truth; expensive
_ If you own a business, you can write off your ______ ______ car on taxes without paying payments for the privilege
Truth; paid-for
_ The way to minimize the money lost on things that go down in value is to buy slightly ______.
Truth; used
_ You can get a good deal on a ______ car.
Myth; new
_ A new car loses ______ of its value in the first four years. This is the largest purchase most consumers make that goes in in value.
Truth; 70%
_ I’ll take out a 30-year mortgage and pay ______ , I promise!
Myth; extra
_ Life happens, Something else will always seem more important, so almost no one pays extra every month. Never take more than a ______ fixed-rate loan.
Truth; 15%
_ It is wise to take out an ______ or a ______ mortgage if “I know I’ll be moving.”
Myth; arm; balloon
_ You will be moving when they ______.
Truth; foreclose
_ You need a credit card to a car ______ or to make ______ online or by phone.
Myth; rent; purchases
_ A ______ card will do all of that, except for a few major rental companies. Check in advance
Truth; debit
_ “I pay mine off every ______ with no annual fee. I get a brownie points, air miles, and a free hat.”
Myth; month
_ A recent Dun and Bradstreet study found that when you use plastic instead of cash, you spend ______ more because spending cash hurts. So what if you get 1% back and a free hat?
Truth; 12-18%
_ I’ll make sure my ______ gets a credit card so he/she can learn to be responsible with money.
Myth; teenager
_ Teens are a huge ______ of credit card companies today.
Truth; target
_ The home equity loan is good for ______ and is a substitute for an emergency fund.
Myth; consolidation
_ You don’t go into ______ for emergencies
Truth; debt
_ Debt consolidation ______ interest, and you get just one smaller payment
Myth; saves
_ Debt consolidation is a ______.
Truth; con
_ Debt consolidation typically saves ______ or ______ interest because you will throw your low interest loans into the deal.
Truth; little; no
_ You can’t ______ your way out of debt.
Truth; borrow
_ Smaller payments equal more ______ in debt.
Truth; time
_ Debt is a ______ and should be used to create prosperity.
Myth; tool
_ The borrower is ______ to the lender.
Truth; slave
_ When surveyed, the Forbes 400 were asked, “What is the most important key to building wealth?” ______ replied that becoming and staying debt free was the number one key to wealth building
Truth; 75%
How much could you ______ invest, blow, and ______ if you had no payments?
save; give
Step 1 Out of Debt:
Quit ______ more ______ !
borrowing; money
Step 2 Out of Debt:
You must ______ money.
save
Step 3 Out of Debt:
______ really works.
Prayer
Step 4 Out of Debt:
______ something.
Sell
Step 5 Out of Debt:
Take a part-time ______ or ______ (temporarily).
job; overtime
Pay off all debt using the ______ ______.
debt snowball
