Unit Three

Question 0

Monthly debt divided by your gross monthly income

Answer 0

Debt to Income Ratio

Question 1

Repayment schedule may be differed while the student is still in school

Answer 1

Student Loan Debt

Question 2

Legal obligation made by this person to make payments in event of default

Answer 2

Co-Signer

Question 3

Details person financial history specific to their ability to repay borrowed money

Answer 3

Credit Report

Question 4

Company that collects information related to individuals payment practices

Answer 4

Credit Bureau

Question 5

Limits the behavior or actions of those attempting to obtain a payment

Answer 5

Fair Debt/Collections Laws

Question 6

Is a legal binding contract for a specific period of time

Answer 6

Lease (Apartment)

Question 7

Often displayed by drama addicts and poor planning

Answer 7

Management by Crisis

Question 8

Cash taken from an individual’s account every month

Answer 8

Auto Payments

Question 9

Fundamental change in approach or underlying assumptions

Answer 9

Paradigm Shift

Question 10

A range of investments held by a person

Answer 10

Portfolio

Question 11

The most expensive version of financing

Answer 11

Lease (Car)

Question 12

Oversized amount due at the end of a mortgage or commercial loan

Answer 12

Balloon Payment

Question 13

Drops in 18%-28% in the first year

Answer 13

Brand New Car

Question 14

The difference between current market value and what is owed

Answer 14

Equity