Choose wisely. There is only one correct answer to each question.
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1.
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.
2.
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.
3.
If you have questions about the type of collection practices that are allowed, contact the _______ in your state to see what the state law allows.
Consumer protection office. Your state's consumer protection office will have information about state laws governing credit collection practices that operate together with federal regulations.
4.
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.
5.
Which of the following is NOT an example of an essential debt?
The monthly minimum payment on an unsecured credit card. Though not a good idea, a payment can be skipped without truly severe consequence.