a
Case summary:JM is credit manager required to a topic on using credit wisely. Where consumer credit is defined, credit for graduates and resolving budgetary imbalance is explained.
Characters in the case : JM of Vancouver Washington.
Adequate information: JM require to deliver a speech about using credit wisely. He is required to determine consumer credit use of credit by graduates.
To determine: If J’s enthusiasm over the idea of debt consolidation is justified.
Introduction:
Over indebtedness:it is the situation when excessive debts make repayment difficult and cause financial distress. They are many signs of over indebtedness, they are. (1) Not knowing how much you owe, (2) running out of money, (3) Paying only minimum amount due, (4) exceeding debt limit and credit limits, (5) increases credit limits, (6) using cash advances to pay credit cards (7) Skipping credit payments and (8) refinancing or consolidation.
Only way to get out from excessive debt is cut down on your spending and put the extra money towards your debt payments.
b
Case summary:JM is credit manager required to a topic on using credit wisely. Where consumer credit is defined, credit for graduates and resolving budgetary imbalance is explained.
Characters in the case : JM of Vancouver Washington.
Adequate information: JM require to deliver a speech about using credit wisely. He is required to determine consumer credit use of credit by graduates.
To determine: The use of credit by graduates.
Credit managementis an arrangement in which goods, services, can be bought or money is received with a promise to repay at a pre specified date. Credit is a form of contractual agreement between a lender and a borrower. If the lender believes that a potential borrower will repay the money, than credit will be extended.
c
Case summary:JM is credit manager required to a topic on using credit wisely. Where consumer credit is defined, credit for graduates and resolving budgetary imbalance is explained.
Characters in the case : JM of Vancouver Washington.
Adequate information: JM require to deliver a speech about using credit wisely. He is required to determine consumer credit use of credit by graduates.
To determine: The use of credit wisely by graduates.
Credit management is an arrangement in which goods, services, can be bought or money is received with a promise to repay at a pre specified date. Credit is a form of contractual agreement between a lender and a borrower. If the lender believes that a potential borrower will repay the money, than credit will be extended. The borrower is expected to live up to the expectation of lender by repaying the lender with specified interest and any other charges.
d
Case summary:JM is credit manager required to a topic on using credit wisely. Where consumer credit is defined, credit for graduates and resolving budgetary imbalance is explained.
Characters in the case : JM of Vancouver Washington.
Adequate information: JM require to deliver a speech about using credit wisely. He is required to determine consumer credit use of credit by graduates.
To determine: If credit is a good option to resolve their budget imbalance.
Credit management is an arrangement in which goods, services, can be bought or money is received with a promise to repay at a pre specified date. Credit is a form of contractual agreement between a lender and a borrower. If the lender believes that a potential borrower will repay the money, than credit will be extended. The borrower is expected to live up to the expectation of lender by repaying the lender with specified interest and any other charges.
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Chapter 6 Solutions
Personal Finance (MindTap Course List)
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- Obtaining credit begins with you. After you complete a credit application, the lender decides if you are a good risk. Agencies that collect credit information about individuals are called credit bureaus. For a fee, they provide information about you that lenders need to decide if you are a good risk. The information you provide on your application is checked against the information the credit bureaus have collected about you. Why is your credit application approved or denied? ооооо Good news-your credit application was approved. What are the major factors about you that the lender used to evaluate your creditworthiness? Check all that apply. оооо APPROVED Physical appearance Character Political affiliation Capacity Religion 0000 MEGACREDIT Capital Extra 199 SIE TEL Your friend recently applied for credit and was turned down. Why was your friend probably denied credit? Check all that apply. History of personal bankruptcy FICO score greater than 850 Absence of checking, savings, or other…arrow_forward1. Describe the importance of a credit score for financial planning. 2. List the credit bureaus and list information that is contained in a person's credit report. 3. Review at least two sources of free credit reports, such as Credit Karma or any other site that you are familiar with. As described on one of these sites, name the factors that affect credit scores. 4. Propose a strategy that is expected to increase a person's credit score.arrow_forwardA credit manager who is concerned about a client's viability might take all of the following steps except for the following: O require monthly billing terms O require the client post a letter of credit O require COD terms O require CBD tems Question 4 The Treasurer of a corporation is negotiating with one of his / her suppliers to allow the corporation to have 30 days to pay supplier's invoices. The Treasurer is arranging: O cash discount terms O Short term financing O commercial paper O a factoring of receivablesarrow_forward
- Most young adults form their opinions about credit and debt from what they see in their parent's experiences. How has your perception of carrying credit card debt, student loans, and other borrowing changed as a result of reading chapters 6 and 7?arrow_forwardShould this person open a credit card account? If they do decide to open the new credit card account, what’s one thing this individual should monitor?arrow_forwardThe company el Ahuehuete, S.A., shows you the data of the credit applicants. Without knowing the rules and credit policies of this company. Each case will provide conditions for you to establish minimum criteria for granting credit. Once you have reached an agreement as a team, review who would be subject to credit according to these new policies that have been established. Dinora Velázquez. Homemaker. She manages the household and budgeted monthly household expenses amount to $16,000.00. Her husband is the breadwinner; he is a maquila worker and earns $30,000.00. They have 2 elementary school age children. She has a mortgage on the house they live in, which takes 20% of her family's income. Subject to credit? Would it be good for the company to lend you credit?arrow_forward
- Obtaining credit begins with you. After you complete a credit application, the lender decides if you are a good risk. Agencies that collect credit information about individuals are called credit bureaus. For a fee, they provide information about you that lenders need to decide if you are a good risk. The information you provide on your application is checked against the information the credit bureaus have collected about you. Why is your credit application approved or denied? DENIED 0000 SORRY! to you fra C cand hand Collateral Physical appearance Character Political affiliation Marital status Capacity e yo yhing ring you Bestar lates Onge y Bad news-your credit application was denied. What are the major factors about you that the lender used to evaluate your creditworthiness? Check all that apply. Select reasons why you were probably turned down for credit. Check all that apply. Large amount of available credit relative to income False or misleading information on your application…arrow_forward4) Describe the difference between a hard inquiry and a soft inquiry. Give an example of each and explain how they impact your credit report/score. 5) Discuss 5 areas in life where your credit score could be checked and thus impact the purchase/event? 6) Describe the 5 C's of credit. What is the most important action to building your character, one of the 5 C's.arrow_forwardYour friend Binna has a money market mutual fund account, automatic deposit of her paycheck into an interest-bearing checking account at the company credit union, and a CD from the local branch of a bank that advertises "coast-to-coast" banking. What is the benefit of "mixing and matching" financial institutions and their services? Question content area bottom Part 1 What is the benefit of "mixing and matching" financial institutions and their services? (Choose all that apply.) A. Increasing the flexibility of managing funds. B. Increasing risk due to increased investments. C. Minimizing service charges and other fees. D. Maximizing the returns and features from combined accounts.arrow_forward
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