Using Credit

· Credit costs money. Don’t buy things you don’t need or want. Resist high–pressure safes techniques.

· Determine how much debt you can handle.

· Comparison shop for credit. If you are suspicious about a lender, check to see if the lender is licensed and whether complaints have been filed.

· Before making a credit purchase, read and understand the entire contract. Don’t sign contracts with blank spaces.

· If a contract calls for a large final payment, be sure you can afford it.

· Once you’ve signed a credit agreement, keep a copy in a safe place. Keep receipts for each payment.

Find the equivalents of the following words and expressions
in the text.

Стать жертвой, ростовщик, погашение кредита один раз полной суммой; условие ускоренного платежа по ссуде; большие выплаты; объединение счетов; вычесть выплаты из ежемесячных взносов; перед расплатой с кредиторами; злоупотребления в вопросах кредитования; стоимость всех элементов кредита; условия плавающей процентной ставки; условия оплаты и дополнительные издержки при задержках с выплатами взносов; нарушитель; не поддаваться на уговоры продавцов.

Answer the questions:

1. How can consumers fall prey toloan sharking. Who are loan sharks?

2. Are usurious loans illegal under state laws?

3. What are balloon payments? Why should consumers carefully consider any agreement that calls for a large final payment?

4. What is the acceleration clause and why should consumers avoid it in financing agreements?

5. Why should you also beware of bill consolidation?

6. What is done to prevent credit abuses? What does the Truth in Lending Act require creditors to do?

7. Are there such (or similar) laws in Russia?

8. You’ve read some advice concerning credit. Which piece do you find most useful? Why?

9. Where can consumers go to comparison shop for a loan?

Match the words on the left with the correct definition
on the right:

Usurious	it permits the creditor to accelerate the loan, making all future payments due immediately in the event a consumer misses a single payment.
Balloon payment	liquidate.
acceleration clause	the total amount you pay to use the credit, including interest charges and any other fees.
Bill consolidation	corrupt practice.
Wind up	the last payment is much larger than the monthly payments.
Abuse	illegal.
Finance charge	disturber.
Violator	combining all your debts into a single one.

Problem–solving: