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Chapter 4

        Help!  

Question
Answer
___% of americans are living paycheck to paycheck   70  
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when it comes to debt if you tell a lie or spread a _____ long enough eventually it becomes accepted as the ____   myth;truth  
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debt has been ___ to us with such intensity for so long that to imagine living without it requires a complete ___ shift, a completely new way of looking at things   marketed; paradigm  
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in 1919- in the sears catalog, credit was called ___   folley  
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___ didn't believe in debt and wouldnt allow it given in his stores. it wasn't until after his death in ____ that it was then accepted   J.C. Penney; 1971  
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_____ hated debt and would not offer it on cars for __ years after General Motors began offering credit   Henry Ford of Ford Motor Company; 10  
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birth of the credit card in ___ by ____   1950; Frank McNamara  
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McNamara's company ___ is still in business   Diners Club  
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in 1958 a west coast bank ___ issues a pice of plastic called ____   Bank of America; BankAmericard  
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___ was born in 1958   American Express  
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in 1970 only __% of americans owned credit cards   15  
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in 1976 BankAmericard changed it's name to   VISA  
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in 1986 Sears got in a dispute with Visa and so they created the ____   Discover Card  
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our ____ thought debt was a sin   great grandparents  
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our ____ thought it was stupid   grandparents  
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our ___ borrowed on a few things   parents  
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___ borrow on everything   we  
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MYTH: If i ____ money to a friend or relative, I will be helping them   loan  
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TRUTH: the relationship will be strained or _____   destroyed  
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MYTH: by ____ a loan, I am helping our a friend or relative   cosigning  
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TRUTH: the bank requires a cosigner because the person isn't likely to ____   repay  
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MYTH: ____, rent-to-own, title pawning, and tote-the-note lots are needed ____ for lower income people to help them get ahead   cash advance; services  
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TRUTH; these are horrible, greedy ___ that aren't needed and don't benefit anyone but the owners of these companies   rip-offs  
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80% of ____ in America are first-generation rich   millionaires  
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___ for the cash sale of a new car   82  
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____ for financing a new car   $755  
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__ for leasing a new car   1,300  
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MYTH: the ___ and other forms of gambling will make me __   lottery, rich  
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TRUTH: the lottery is a ____ and on people who can't do math   tax on the poor  
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people w/o High school diploma spent an average of ____ college graduates spend an average of __ a month on the lottery   173, 49  
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in lottery's it is always the lower-income ___ that generate the highest sales   ZIP codes  
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MYTH: ___ payments are a way of life and you'll always have one   car  
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TRUTH: staying away from car payment by driving reliable used cars is what the typical ___ does   millionaire  
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average car payment today   $464 per month over 64 months  
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MYTH: __ your car is what sophistaced financial peopel do   leasing  
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TRUTH: leasing your car is the most ___ way to finance and operate a vehicle   expensive  
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if you own a business you can ___ your paid-for car on taxes without paying payments for the privelege   write-off  
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the way to ___ the money lost on things that go down in value is to buy slightly ___   minimize; used  
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MYTH: you can get a good deal on a ____   new car  
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TRUTH: a new car loses __% of it's value in the first 4 years   70  
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MYTH: I'll take out a 30-year mortgage and pay __   extra  
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TRUTH: never take out more than a __ year fixed-rate mortgage   15  
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MYTH: It's wise to take out an ___ or ___ mortgage if you know you will move   ARM, balloon  
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TRUTH: you will be moving when they ___   foreclose  
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The adjustable rate mortgage is here to keep the ____ from losing money. It transfers the -_ of higher-interest rates to you   bank, risk  
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spending cash registers as   pain  
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MYTH: you need a ___ to rent a car or make ___ online or by phone   credit card, purchases  
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TRUTH: a __ card does all of that   debit  
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MYTH: i pay my ___ off every money with no annual payment or fee   credit card  
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TRUTH: when you use cash instead of plastic, you spend ___ less because spending cash hurts   12-18%  
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___ are a huge target of credit card companies today   teens  
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you don't go into ___ for emergencies   debt  
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debt consolidation is a   con  
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debt consolidation saves little or no __ becasue you will throw your low interest loans into the deal   interest  
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you cannot ___ your way our of debt   borrow  
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___ payments equal more ___ in debt   smaller, time  
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the ___ is slave to the lender   borrower  
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75% of the Forbes 400 say that becoming and staying __ free was #1 key to wealth building   debt  
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quit ___ more ___   borrowing, money  
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you must __ money   save  
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___ something   sell  
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part-time __ or ___   job, overtime  
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use the ___   debt snowball  
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