Choose wisely. There is only one correct answer to each question.
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1.
Payday loans are so called because you are obligated to pay them back when you receive a paycheck from your job.
True. Payday loans are a means of getting fast cash, which you must pay back on your payday. Hefty fees are taken out.
2.
One of the few exceptions to the rule that a creditor must sue to get a court judgment to seize funds from your bank account or place a lien on your property is the _______.
IRS. Federal law allows the IRS to seize the contents of your bank accounts and place a lien on your house for back taxes without getting a court judgment first.
3.
Which of the following is true regarding an essential debt?
Payment cannot be put off long without serious consequences. The consequences for delayed payment of non-essential debts are not as severe.
4.
If you are so far behind with your car payments that you can't catch up, one option is to _______ your car to the dealer to avoid repossession.
Surrender. When you voluntarily surrender your car to the dealer to avoid repossession, you may be able to avoid repossession charges and possibly your remaining loan balance.
5.
Bill collectors are allowed to call you late at night to demand payments from you.
False. Federal law prohibits bill collectors from calling you in the early mornings and late evenings, harassing you, making unauthorized charges, making false statements to you, and contacting you at work.