Dave Ramsey - Unit 4

Question 1

If you tell a lie or spread a ______ often enough, loud enough, and long enough, the myth becomes accepted as ______.

Answer 1

myth; truth

Question 2

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 ______ ______

Answer 2

marketed; Paradigm Shift

Question 3

_ If I loan money to a friend or relative, I will be ______ them

Answer 3

Myth; helping

Question 4

_ The relationship will be strained or ______

Answer 4

Truth; destroyed

Question 5

_ By ______ a loan, I am helping out a friend or relative

Answer 5

Myth; co-signing

Question 6

_ 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.

Answer 6

Truth; repay

Question 7

_ Cash advance, rent-to-own, title pawning, and tote-the-note car lots are needed ______ for lower income people to get ahead

Answer 7

Myth; services

Question 8

_ These are horrible, ______ rip-offs that aren’t needed and benefit no one but the owners of these companies

Answer 8

Truth; greedy

Question 9

_ Playing the lottery and other forms of gambling will make me ______ .

Answer 9

Myth; rich

Question 10

_ The lottery is a tax on the poor and on people who can’t do ______ .

Answer 10

Truth; math

Question 11

_ Car ______ are a way of life, and you’ll always have one.

Answer 11

Myth; payments

Question 12

_ Staying away from car payments by driving reliable used cars is what the typical millionaire does. That is ______ they become millionaires

Answer 12

Truth; how

Question 13

_ ______ your car is what sophisticated financial people do. You should always lease things that go down in value. There are tax advantages

Answer 13

Myth; Leasing

Question 14

_ 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.

Answer 14

Truth; expensive

Question 15

_ If you own a business, you can write off your ______ ______ car on taxes without paying payments for the privilege

Answer 15

Truth; paid-for

Question 16

_ The way to minimize the money lost on things that go down in value is to buy slightly ______.

Answer 16

Truth; used

Question 17

_ You can get a good deal on a ______ car.

Answer 17

Myth; new

Question 18

_ 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.

Answer 18

Truth; 70%

Question 19

_ I’ll take out a 30-year mortgage and pay ______ , I promise!

Answer 19

Myth; extra

Question 20

_ 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.

Answer 20

Truth; 15%

Question 21

_ It is wise to take out an ______ or a ______ mortgage if “I know I’ll be moving.”

Answer 21

Myth; arm; balloon

Question 22

_ You will be moving when they ______.

Answer 22

Truth; foreclose

Question 23

_ You need a credit card to a car ______ or to make ______ online or by phone.

Answer 23

Myth; rent; purchases

Question 24

_ A ______ card will do all of that, except for a few major rental companies. Check in advance

Answer 24

Truth; debit

Question 25

_ “I pay mine off every ______ with no annual fee. I get a brownie points, air miles, and a free hat.”

Answer 25

Myth; month

Question 26

_ 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?

Answer 26

Truth; 12-18%

Question 27

_ I’ll make sure my ______ gets a credit card so he/she can learn to be responsible with money.

Answer 27

Myth; teenager

Question 28

_ Teens are a huge ______ of credit card companies today.

Answer 28

Truth; target

Question 29

_ The home equity loan is good for ______ and is a substitute for an emergency fund.

Answer 29

Myth; consolidation

Question 30

_ You don’t go into ______ for emergencies

Answer 30

Truth; debt

Question 31

_ Debt consolidation ______ interest, and you get just one smaller payment

Answer 31

Myth; saves

Question 32

_ Debt consolidation is a ______.

Answer 32

Truth; con

Question 33

_ Debt consolidation typically saves ______ or ______ interest because you will throw your low interest loans into the deal.

Answer 33

Truth; little; no

Question 34

_ You can’t ______ your way out of debt.

Answer 34

Truth; borrow

Question 35

_ Smaller payments equal more ______ in debt.

Answer 35

Truth; time

Question 36

_ Debt is a ______ and should be used to create prosperity.

Answer 36

Myth; tool

Question 37

_ The borrower is ______ to the lender.

Answer 37

Truth; slave

Question 38

_ 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

Answer 38

Truth; 75%

Question 39

How much could you ______ invest, blow, and ______ if you had no payments?

Answer 39

save; give

Question 40

Step 1 Out of Debt:

Quit ______ more ______ !

Answer 40

borrowing; money

Question 41

Step 2 Out of Debt:

You must ______ money.

Answer 41

save

Question 42

Step 3 Out of Debt:

______ really works.

Answer 42

Prayer

Question 43

Step 4 Out of Debt:

______ something.

Answer 43

Sell

Question 44

Step 5 Out of Debt:

Take a part-time ______ or ______ (temporarily).

Answer 44

job; overtime

Question 45

Pay off all debt using the ______ ______.

Answer 45

debt snowball