Test your knowledge

Choose wisely. There is only one correct answer to each question.

Keep studying!

Review your answers below to learn more.

If you are behind on a non-payday loan, why should you talk with the creditors about it?

Choose wisely. There is only one correct answer.

They will forgive the loan.

They would rather work with you than have to sell your loan to a debt collector.

They will give you another loan to cover it.

None of the above

They would rather work with you than have to sell your loan to a debt collector. If they sell your loan to a debt collector, they will get very little for it. They WANT to work with you rather than see that happen.

To qualify for a payday loan, what must your income be?

Choose wisely. There is only one correct answer.

$100 per week

$300 per week

There is no minimum.

There is no minimum. You just need to earn sufficient money to cover the loan.

What do borrowers use payday loans for?

Choose wisely. There is only one correct answer.

Medical emergencies

Regular bills

As an alternative to other loans

All of the above

All of the above. People take out payday loans for many different reasons.

If you take out $1000 from a payday lender, a credit card, and a credit card cash advance, which will charge the most interest?

Choose wisely. There is only one correct answer.

The payday lender

The credit card

The credit card cash advance

The payday lender. By far, the payday lender will charge the most interest. The dollar amount difference between it and the credit cards will be immense. It should be noted that there are also options that are even lower in interest than the credit cards.

If you put up a guitar at a pawnshop in return for a loan, what usually happens if you can't pay the loan back?

Choose wisely. There is only one correct answer.

The pawnshop can keep the guitar.

Nothing

You get an extra week to pay off the loan.

None of the above

The pawnshop can keep the guitar. This is the general rule for how these loans work.

© Copyright 2024 Precision Information, publisher of the Financial Fitness Group family of products. The trade name Financial Fitness Group and the trademarks Financial Fitness CENTER™, Financial Fitness CHECKUP™ and Financial Fitness ACADEMY™ are exclusive marks of Precision Information, LLC. All rights reserved.