General Listening Quiz

Is borrowing money for these things a good idea? Why or why not?

• a new car
• a used car
• a vacation
• school tuition
• new clothing
• a wedding
• cosmetic surgery
• a smartphone
• a house

1. 1. Getting a loan is helpful for people in financial emergencies.
   2. Loan services exploit people who are financially vulnerable.
   3. The government should strictly regulate payday loan companies.
   4. People should avoid borrowing money at all costs.
   5. Borroing money from a bank is easier and faster than asking family or friends for money.
   6. High-interest rates on loans are fair because of the risk lenders take.

• • a wedding
  • cosmetic surgery
  • a smartphone
  • a house

“nest egg” = extra money to save for the future
“We need to have a nest egg in case the economy worsens.”

“be broke” = be out of money
“Brandon is broke, so I can’t buy any food this week.”

Listen to the recording and answer the questions. (See transcript)

Here are some words and expressions that appear in the recording:

• afford (verb): have enough money to pay for something
  – I don’t think we can afford a new car right now.
  – Do you think we can afford to eat out this week?
• outrageous (adjective): very unusual or surprising
  – The cost of housing is outrageous these days.
  – That is an outrageous tie. The colors are hard to look at.
• up to one’s ears in debt (idiom): have a lot of debt
  – Some students are up to their ears in debt because of student loans.
• give it straight (idiom): speak directly and openly about something
  – Give it to me straight. How much money do we still have in the bank?
• awful (adjective): terrible
  – Maria is in an awful situation right now without a job.
• hassle (noun): an inconvenience or bother
  – It is a real hassle to take so many buses to work.
  – Driving to school is such a hassle because the roads are always congested.
• run your dry (idiom): spend money you can’t afford
  – My kids are going to run us dry. They eat everything in the house.
• get locked into something (idiom): to become stuck in a situation or commitment that is hard to change or escape
  – We got locked into a year-long gym membership, even though we stopped going after the first month.

Listen to the conversation again. What advice can you give the man in this situation? Is he making a good choice? Are there other ways he could pay for his plans instead of taking out a payday loan? Explain.

Use the internet to learn more about the advantages and disadvantages of payday loans. Are such companies or services available in your country?