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Questions and Answers
Which of the following is a sign that you may have a debt problem?
Which of the following is a sign that you may have a debt problem?
- You have a mortgage
- You pay off your credit card bills in full each month
- You have a high credit score
- You spend more than 20% of your monthly income on consumer debt (correct)
What should you do if you find yourself in overwhelming debt?
What should you do if you find yourself in overwhelming debt?
- Give up hope and stop making payments
- Borrow from retirement accounts to pay off your debts
- Call your creditors to discuss your options before missing a payment (correct)
- Continue making only the minimum payment on your bills
What is the Debt Avalanche strategy?
What is the Debt Avalanche strategy?
- Paying off the smallest loans first
- Paying off the loans with the highest interest rates first (correct)
- Paying off the loans with the lowest interest rates first
- Paying off all loans at the same time
Which debt repayment method involves paying extra on your highest interest/small loans first and continuing to make the same high payment towards your remaining loans until they are all paid off?
Which debt repayment method involves paying extra on your highest interest/small loans first and continuing to make the same high payment towards your remaining loans until they are all paid off?
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What is a caution to consider when thinking about debt consolidation?
What is a caution to consider when thinking about debt consolidation?
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Which mistake should you avoid when paying down debt to protect your home?
Which mistake should you avoid when paying down debt to protect your home?
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What kinds of debt are not erased by filing for bankruptcy?
What kinds of debt are not erased by filing for bankruptcy?
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