DROP DOWN ANSWER OPTIONS:

1. check all that apply

2. the self-discipline to use it only in emergencies / simply staying below your maximum limit

3. a loan / your own money

4. is not / is

5. make purchases sooner than you otherwise planned / draw on the equity in your home

6. cumbersome / very simple

7. be managed by using overdraft protection / quickly become overwhelming

8. it taps into the equity funds you may be depending on for your retirement / the usual long repayment periods of 10 or more years

9. may not / may

10. would envy / could

What do the three major forms of open (non-credit card) credit have in common? Check all that apply. They require collateral. They provide funds that can easily be exhausted. They provide funds that are easy to spend unwisely. They are helpful in emergencies. Knowing how revolving lines of credit work will help you to make informed decisions about using them. Answer the following questions about the various options available through revolving credit lines. Using overdraft protection without getting into trouble with it requires . Remember that the funds used for the protection are . As such, there a fee attached to using the funds. Ask yourself if the accumulating fees are really worth your overdrafts, for many of which you may have forgotten the original use. . Remember that a big danger is that Using an unsecured line of credit can help you once approved, obtaining cash advances is The debt created can A big An advantage of using a home equity line of credit is danger is that you have the cash flow necessary to make the payments. You lose your house