Chapter 4 Lesson 6 Getting and Staying Out of Debt

What percentage of Americans live paycheck to paycheck?

• 61%

• 78%

• 47%

• 37%

According to the text, which of the following is NOT considered worth going into debt for by Americans?

• Health Care

• Housing

• Electronics

• Education

What is the first step in the Debt Snowball Method?

• Pay off the largest debt first

• List your debts from smallest to largest

• Pay off the debt with the highest interest rate first

• Consolidate all debts into one payment

What is the First Foundation mentioned in the text?

• Save a $500 emergency fund

• Pay off all credit card debt

• Buy a new car

• Invest in the stock market

Which of the following is a suggested method to get out of debt?

• Borrow more money

• Use the debt snowball method

• Ignore your debts

• Increase your credit card limit

What is the main reason given for living a debt-free lifestyle?

• To impress others

• To have financial security and build wealth

• To avoid paying taxes

• To travel more

What is one of the steps mentioned to get out of debt?

• Start borrowing more money

• Sell something

• Buy a new car

• Open a new credit card

What percentage of Americans have 4 or more credit cards?

• 11%

• 19%

• 28%

• 37%

What mindset is suggested to live a debt-free life?

• Debt is a financial tool

• Debt is never an option

• Debt is necessary for success

• Debt is unavoidable

What is the suggested action if you have a car payment and want to get out of debt?

• Keep the car and pay off the loan slowly

• Sell the car and buy an affordable used car

• Lease a new car

• Ignore the car payment