Finance Chapter 4 Lesson 6 Study Guide

Take ______ off of the table.

Pay off all debt using the ___________.

Paying off debt is not a math problem--it is a ________ problem.

This is not a theory; it is a ________ process.

Why is it important to learn and take advice from people who are successful?

What __% of Americans living paycheck to paycheck, most people can only look like they're living the American dream.

Being debt-free with a small income puts you _________ ahead of most Americans already.

What percent of Americans would willingly go into debt for health care?

________ reminds you that you're part of a larger global community where others have needs that you can help meet.

List the steps out of debt.

Debt Management Concepts

Take debt off the table for a healthier financial situation.
The Debt Snowball method is advocated for systematically paying off all debts.
Paying off debt involves behavioral changes, not just mathematical calculations.
Focus on proven processes rather than untested theories for effective debt management.

Importance of Learning from Success

Learning from successful individuals can guide personal financial success by adopting their strategies.
Emphasis on following successful people's advice can lead to better financial decisions.

Current Financial Landscape

78% of Americans live paycheck to paycheck, indicating widespread financial instability.
Being financially debt-free, even with a low income, positions one significantly ahead of the majority of Americans.

Healthcare and Debt

61% of Americans would choose to go into debt to cover healthcare expenses, highlighting the stress of medical costs on personal finances.

Role of Giving

Engaging in giving fosters a sense of connection to a larger global community and encourages helping those in need.

Steps to Achieve Debt Freedom

To escape debt, one should:
- Cease borrowing additional funds.
- Prioritize saving money consistently.
- Consider selling unused items to generate cash.
- Explore opportunities for part-time work or overtime.
- Implement the Debt Snowball method for effective debt repayment strategies.

This study guide focuses on key vocabulary related to managing debt, including terms like 'debt snowball' and discussions on the behavioral aspects of debt repayment. It aims to help students understand the underlying principles of financial literacy and debt management.