Question

1)

What is consumer credit?

List two good reasons to borrow and two unnecessary reasons to borrow.

What forms of consumer credit do you have? Which is the costliest? What can you do to lower the credit costs?

Suppose you just received your credit card statement and noticed a charge to a store that you have never patronized. What steps should you take to handle this?

Name three free sources whereby you can obtain credit scores (not just reports) from all three credit reporting bureaus.

2)

What common tax-saving methods are available to most individuals and households?

Per your chosen career (position and geographic area), determine the average salary with this tool: Salary (Links to an external site.)Links to an external site.
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(Use lower band amount if entry level)

Once you obtain the salary information, calculate your actual taxes (make your own assumptions per your personal situation for deductions, etc.) via the Taxact calculator: Taxes (Links to an external site.)Links to an external site.

Answer 1

Consumer credit can be described as that credit which is offered to a consumer on the basis of his or her purchase record or history or in other words Consumer credit is personal debt taken on to get product and services. A visa credit care or amex is one variety of line. though any form of loan may well be tagged line, the term is sometimes wont to describe unsecured debt that's taken on to shop for everyday product and services. The two good reasons would be to hold the cash for any future reasons or for any secured purposes, where as unnecessary reasons would be for spending on unnecessary luxury items which do not generate income or wasteful expenditure. To lower the credit costs on should pay the credit amount in time in order to avoid charges and interest dues. Whenever you find any charge that is done without your actual approval or any transaction which not been done by you, you should notify the credit reporting agency in writing and give details of the information you claim to be inaccurate. The credit reporting agency is responsible for investigating his claim within 30 days. The credit reporting agency will also forward your claim to the company where the amount charged occurred and allow them to investigate as well. Once the investigation is complete, the reporting company must report back to the credit agency their findings. If the information they are reporting is inaccurate, they will correct your account and notify all three credit agencies and release you a new credit report for free. You should also notify the reporting company in writing that you are filing a dispute. If you're is correct, and that information has been reported inaccurately, the reporting company must remove that item and it can never reappear on his credit report

Common tax savings efforts embody owning a home with a mortgage (property taxes and mortgage interest are deductible) creating purchases that will be subtracted as job connected expenses, choosing tax postponed and tax exempt investments, owning your own business, and taking part during a tax postponed retirement savings account.

Let us take an example for calculating taxable income , below is a hypothetical example , you can take any amount and any figure - Gross salary = $41,780 ; Interest earnings = $225 ; Dividend income = $80 ; One persona exemption = $ 2,650
Itemized Deductions = $3,890 ; Adjustments to income = $1,150

Taxable income = 41,780+80+225-1,150-3,890-2,650 = $34,595