Support Services

What are the various channels an individual can turn to for guidance on managing debt?

• Financial advisors

• Online resources

• Family and friends

• All of the above

How do formal and informal debt-management approaches differ, and what options are available under each category?

• Formal approaches involve legal procedures, while informal approaches are based on personal agreements.

• Formal approaches are quicker than informal ones.

• Informal approaches are more reliable than formal ones.

• There is no difference between formal and informal approaches.

What role do financial advisors and online platforms play in assisting individuals with debt-related concerns?

• They provide guidance and tools for managing debt.

• They increase the amount of debt individuals have.

• They have no impact on debt management.

• They only assist with investment strategies.

Individuals can assess which debt-management strategy would be most effective for their personal situation by:

• Consulting a financial advisor

• Using a debt calculator

• Reviewing their credit report

• All of the above

What are some potential risks or drawbacks associated with using informal debt-management strategies?

• Lack of legal protection and potential for higher interest rates

• Guaranteed lower interest rates

• Increased financial security

• Improved credit score

A person's credit score can be affected by their choice of debt-management strategy. Which of the following strategies is most likely to improve a credit score?

• Paying off debts on time

• Ignoring debt payments

• Taking on more debt

• Closing all credit accounts

The role of Credit Counselling Agencies Nonprofit Organizations is to:

• Provide financial education and budgeting assistance

• Offer legal advice for bankruptcy

• Invest in stock markets for clients

• Manage real estate properties

Which of the following is an example of a Credit Counselling Agency Nonprofit Organization?

• National Foundation for Credit Counselling (NFCC)

• American Red Cross

• Habitat for Humanity

• United Way

What services are offered by Credit Counselling Agencies?

• Debt management plans

• Credit report reviews

• Financial education workshops

• All of the above

Banks and credit unions offer which of the following in terms of debt consolidation?

• Lower interest rates

• Higher interest rates

• No interest rates

• Variable interest rates