Dave Ramsey - Unit 4 Flashcards

1
Q

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

A

myth; truth

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2
Q

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 ______ ______

A

marketed; Paradigm Shift

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3
Q

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

A

Myth; helping

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4
Q

_ The relationship will be strained or ______

A

Truth; destroyed

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5
Q

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

A

Myth; co-signing

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6
Q

_ 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.

A

Truth; repay

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7
Q

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

A

Myth; services

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8
Q

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

A

Truth; greedy

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9
Q

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

A

Myth; rich

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10
Q

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

A

Truth; math

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11
Q

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

A

Myth; payments

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12
Q

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

A

Truth; how

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13
Q

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

A

Myth; Leasing

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14
Q

_ 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.

A

Truth; expensive

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15
Q

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

A

Truth; paid-for

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16
Q

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

A

Truth; used

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17
Q

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

A

Myth; new

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18
Q

_ 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.

A

Truth; 70%

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19
Q

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

A

Myth; extra

20
Q

_ 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.

A

Truth; 15%

21
Q

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

A

Myth; arm; balloon

22
Q

_ You will be moving when they ______.

A

Truth; foreclose

23
Q

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

A

Myth; rent; purchases

24
Q

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

A

Truth; debit

25
Q

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

A

Myth; month

26
Q

_ 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?

A

Truth; 12-18%

27
Q

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

A

Myth; teenager

28
Q

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

A

Truth; target

29
Q

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

A

Myth; consolidation

30
Q

_ You don’t go into ______ for emergencies

A

Truth; debt

31
Q

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

A

Myth; saves

32
Q

_ Debt consolidation is a ______.

A

Truth; con

33
Q

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

A

Truth; little; no

34
Q

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

A

Truth; borrow

35
Q

_ Smaller payments equal more ______ in debt.

A

Truth; time

36
Q

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

A

Myth; tool

37
Q

_ The borrower is ______ to the lender.

A

Truth; slave

38
Q

_ 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

A

Truth; 75%

39
Q

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

A

save; give

40
Q

Step 1 Out of Debt:

Quit ______ more ______ !

A

borrowing; money

41
Q

Step 2 Out of Debt:

You must ______ money.

A

save

42
Q

Step 3 Out of Debt:

______ really works.

A

Prayer

43
Q

Step 4 Out of Debt:

______ something.

A

Sell

44
Q

Step 5 Out of Debt:

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

A

job; overtime

45
Q

Pay off all debt using the ______ ______.

A

debt snowball