FA Mod 9 Reducing your Debt

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Questions and Answers

What is the biggest obstacle to achieving financial freedom?

Saving money in a bank account
Credit card and consumer debt (correct)
Buying a house
Investing in stocks

True or false:Overspending is a bigger problem than under earning.

True (A)

What is a bigger problem than under earning?

Not having a budget
Overspending (correct)
Not having a college degree
Not having a high paying job

True or false: The average American has 5 to 6 credit cards with an average balance of $10,000 in credit card debt.

False (A) Signup and view all the answers

What percentage of cardholders only make minimum monthly payments?

70% (B) Signup and view all the answers

True or false: Paying only the minimum payment on credit cards can help people get out of debt.

False (B) Signup and view all the answers

Study Notes

Credit card and consumer debt are the biggest obstacles to achieving financial freedom.
Overspending is a bigger problem than under earning.
Credit cards can tempt people to overspend and keep them in financial stress.
Being credit card debt-free is a step towards achieving financial freedom.
The average American has 2 to 3 credit cards with an average balance of $6,000 in credit card debt.
70% of cardholders only make minimum monthly payments.
Paying only the minimum payment keeps people in financial entrapment.
It's important to create a plan to pay off each credit card with an organized system.
Use credit cards responsibly and pay them off at the end of each month to avoid interest payments.
Jules will show how to start attacking debt and pay off car loans in the next module.

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Description

Test your knowledge on credit cards and debt management with this informative quiz! Learn about the biggest obstacles to achieving financial freedom and the dangers of overspending with credit cards. Discover the average American's credit card debt and the pitfalls of paying only the minimum monthly payment. Find out how to create an organized system to pay off each credit card and avoid interest payments. Join Jules in the next module to learn how to start attacking debt and pay off car loans. Take the quiz now and improve your financial literacy