Write out at least 3 or more separate steps (no more than five), explaining in full sentences what you will do to build your credit and to avoid drowning in debt. Please use new economic vocabulary.
Write out at least 3 or more separate steps (no more than five), explaining in full sentences what you will do to build your credit and to avoid drowning in debt. Please use new economic vocabulary.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
1. Write out at least 3 or more separate steps (no more than five), explaining in full sentences what you will do to build your credit and to avoid drowning in debt. Please use new economic vocabulary.
Expert Solution
Step 1
Credit basically refers to receiving something of value in the present time and promising to pay for it later, often with a finance charge added by the lender.
On the other hand,
Debt refers to money that one entity, that is, a person, business, organization, or government—owes to another entity. When someone borrows money, they will typically make an agreement with the lender that they will repay the money on a schedule, sometimes with interest or a fee.
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