Search Header Logo

Debt Snowball & Debt Avalanche

Authored by Rex Batie

Geography

6th - 8th Grade

Used 4+ times

Debt Snowball & Debt Avalanche
AI

AI Actions

Add similar questions

Adjust reading levels

Convert to real-world scenario

Translate activity

More...

    Content View

    Student View

9 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the first step in the debt snowball method?

Pay off the debt with the highest interest rate first

List debts from smallest to largest by dollar amount

List debts from highest to lowest interest rate

Make minimum payments on all debts

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main psychological benefit of the debt snowball method?

It saves more money in the long run

It focuses on high interest rates first

It is easier to manage

It provides small psychological wins

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary difference between the debt snowball and debt avalanche methods?

The interest rates of the debts

The total amount of debt to be paid off

The minimum payments on the debts

The order in which debts are paid off

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

According to the debt avalanche method, how should debts be prioritized?

Randomly

From highest to lowest interest rate

From smallest to largest by dollar amount

From largest to smallest by dollar amount

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What type of interest rate did the predatory credit card have in the example?

6%

19%

21%

4.7%

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How much total interest was saved by using the debt avalanche method in the example?

$861

$1,200

$620

$359

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the purpose of maintaining minimum payments on other debts while focusing on one?

To accumulate more debt

To avoid late fees

To increase credit score

To reduce the principal amount

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Google

Continue with Google

Email

Continue with Email

Classlink

Continue with Classlink

Clever

Continue with Clever

or continue with

Microsoft

Microsoft

Apple

Apple

Others

Others

Already have an account?