Debt Management Quiz

Which of the following is NOT listed as a strategy for getting out of debt?

• Increase Your Income

• Create an Emergency Fund

• Invest in the Stock Market

• Cut Unnecessary Spending

What is the first step recommended in the document for getting out of debt?

• Make a Financial Inventory

• Gather Your Data

• Lower Your Interest Rates

• Pay More Than the Minimum

What should you do with your credit reports according to the document?

• File them away for future reference

• Go through them with a fine-tooth comb

• Shred them to protect your privacy

• Send copies to your financial advisor

Which of the following accounts is NOT mentioned as one you should review the most recent statement for?

• Student loans

• Personal loans

• Investment accounts

• Auto loan

What is an essential part of any debt-busting action plan according to the text?

• Taking a vacation

• Making a financial inventory

• Ignoring your debts

• Increasing your debts

Which of the following information should be included when listing a debt?

• The creditor name

• Your favorite color

• Your pet's name

• Your favorite food

What should you divide your total balance by to get a rough monthly payoff figure?

• Your age

• The number of debts you have

• The number of months to freedom

• Your interest rate

What can you use to calculate your take-home pay per month?

• Your monthly net pay

• A random number

• The number of pages in your journal

• The number of creditors

What is the purpose of Tally as mentioned in the text?

• To play games

• To calculate your age

• To total up your expenses and pay down credit card bills

• To make phone calls

What is the main reason for seeking to reduce or eliminate your interest rate according to the text?

• To increase your credit score

• To lengthen your repayment period

• To reduce the total amount paid over time

• To qualify for better credit card offers