1.  Financial difficulties are commonly caused by overspending.

• True
• False

2.  People with financial difficulties may obtain assistance from the Consumer Credit Counseling
Service.

• True
• False

3.  Consolidation loans are mainly used to finance the starting of a new business.

• True
• False

4.  Debt collectors are usually allowed to call you at home before 8 p.m.

• True
• False

5.  Bankruptcy is suggested for people who are a few weeks behind in their credit payments.

• True
• False

6.  A common cause of financial difficulties is:

• poor money management habits.
• a need for additional career training.
• preparing your tax return.
• not having enough life insurance.

7.  A nonprofit organization that provides financial counseling is:

• the Federal Deposit Insurance Corporation.
• the Consumer Credit Counseling Service.
• the Better Business Bureau.
• the National Credit Union Administration.

8.  The purpose of a consolidation loan is to:

• deduct amounts owed from a person’s paycheck.
• pay off one credit card amount before others are paid.
• combine several debts into one payment.
• reduce the amount owed for federal income taxes.

9.  An example of a fair debt-collection practice would be to:

• pretend to be a salesperson to attempt to collect a debt.
• threaten to take legal action to collect the money owed.
• call a debtor at work even if personal calls are not allowed.
  • call a debtor at home before 8 p.m.

10.  Bankruptcy refers to the process of:

• obtaining permission to be late with credit payments.
• obtaining assistance from a credit counseling service.
• using court action to reduce or eliminate your debts.
• using court action to have payments owed deducted from your paycheck.

IN TROUBLE QUIZ ANSWERS

1.  Financial difficulties are commonly caused by overspending.

• True

2.  People with financial difficulties may obtain assistance from the Consumer Credit Counseling
Service.

• True

3.  Consolidation loans are mainly used to finance the starting of a new business.

• False

4.  Debt collectors are usually allowed to call you at home before 8 p.m.

• True

5.  Bankruptcy is suggested for people who are a few weeks behind in their credit payments.

• False

6.  A common cause of financial difficulties is:

• poor money management habits.

7.  A nonprofit organization that provides financial counseling is:

• the Consumer Credit Counseling Service.

8.  The purpose of a consolidation loan is to:

• combine several debts into one payment.

9.  An example of a fair debt-collection practice would be to:

• call a debtor at home before 8 p.m.

10.  Bankruptcy refers to the process of:

• using court action to reduce or eliminate your debts.