All of the following would help a counselor develop a realistic household budget, except:
A. Payment information for a paid-off car
B. Amount spent on
... [Show More] groceries
C. Rent payment information
D. Monthly cable bill
Answer: A
Since the car is paid off, the expense does not need to be included in the new budget.
All of the following are reasons why it is important for a client to track income and expenses before finalizing a budget, except:
A. It helps show clients that they spend less on some expenses than they think.
B. It helps identify spending habits
C. It helps show clients that their spending and expenses are out of control.
D. It helps define realistic and attainable goals and timelines.
Answer: C.
Clients may find that their spending and expenses are out of control. However, the purpose of tracking is to inform realistic budget preparation, not to condone or condemn a client's judgement.
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Which of the following is a "want" and not a "need"
A. Health care premium
B. Car insurance
C. Gym Membership
D. Rent
Answer: C. Gym Membership.
What information is used in determining a budget (give 4)
Pay Stub, Bank Statements, Utility Bills, and Social Security Award Letter.
Ray's commute on the bus takes over an hour, so he wants to buy a car as soon as possible, but he has poor credit and cannot obtain a loan right now. He thinks he can find a reliable car for about $2,000 and has about 20% of the total in the bank from his tax refund. if Ray's goal is to buy a car within 8 months, what is the minimum amount he needs to save each month?
Ray has 20% of $2,000 saved, or $400, so he needs at lease $1,600 more to reach his goal. If he saves for 8 months, he will need to save $200 each month.
Which section of a credit report will contain employer details?
Personal Information
Which section of a credit report will contain information about a student loan
Account Information
Which section of a credit report will contain court information such as bankruptcy?
Public Records
Which section of a credit report will show recent attempts to open a credit card?
Inquiries
Which section of a credit report will contain information about how to correct inaccuracies?
Consumer Rights.
Account History
Payment history of accounts, including late payments, delinquencies, judgments, and liens
Amounts Owed
Ratio of total credit extended to the amount of credit owed
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Length of Credit History
Overall length of credit history in the report, as well as the average age of accounts
Types of credit used
Variety of accounts (e.g., credit card, auto loan, mortgage)
New Credit
Number of recent credit inquiries, as well as new credit accounts.
Where should a client go to obtain a free credit report?
A. www.freecreditreport.com
B. www.myfico.com
C. www.annualcreditreport.co
D. www.experian.com
C. www.annualcreditreport.com
This is the federally authorized site for consumers to obtain free credit reports from each of the three main credit reporting agencies.
Which complies with fair credit laws?
A. an employer can check a credit report at any time
B. A vendor can display part of the credit card number on the sales receipt
C. A credit reporting agency can list information about a collection over eight years old.
D. A creditor can acknowledge a consumer dispute after two months.
B. A vendor can display part of the credit card number on the sales receipt.
-The Fair and Accurate Credit Transactions Act (FACTA) protects consumers from potential identity theft by limiting the information allowed on the sales receipt. [Show Less]