1. Most young adults form their opinions about credit and debt from what they see in their parents’ experiences. How has your perception of carrying credit card debt, student loans, and other borrowing changed as a result of reading Chapters 6 and 7?

2. If you wanted to borrow money to study abroad for a semester and could pay it back within two years after returning, would you prefer a single-payment loan, an installment loan, or a cash advance on a credit card? Why?

3. Some credit cards offer rewards points or a 1 percent or higher cash back reward for all purchases made on the card. How would you feel about using such a card to get those rewards with the intention of paying the balance off in full each month?

4. How do you feel about the fact that interest costs are higher in the early months of a declining-balance loan than they are in the later months?

5. Are prepayment penalties such as that applied with the rule of 78s justified? Why or why not?