Debt Management 36–50+

What is debt management?

• A strategy to handle and repay debts efficiently

• A way to increase debt every month

• A method to avoid paying any loans

• Ignoring financial responsibilities

Which of the following is considered a good debt?

• Loan for education or home purchase

• Loan for luxury vacations

• Borrowing money to gamble

• Taking loans for daily shopping

What happens if you miss multiple EMI payments?

• Your credit score improves

• Your credit score drops, and penalties apply

• You get discounts on future loans

• Banks reward you with gifts

What is the best way to manage high-interest debt?

• Ignore it completely

• Pay the minimum amount every month

• Prioritize paying it off quickly

• Take more loans to cover it

Which financial habit can help you avoid unnecessary debt?

• Impulse shopping

• Creating and sticking to a budget

• Borrowing money frequently

• Not tracking expenses