Financial Management and Debt Strategies Quiz

Who is introduced as a friend of the financial diet and a personal friend of Chelsea?

• Robert Smith

• Mary Johnson

• Cindy Zuniga Sanchez

• John Doe

What is the most common fee associated with credit cards?

• Transaction fees

• APR (Annual Percentage Rate)

• Annual fees

• Late fees

According to the video, what is one major reason for the increase in credit card balances?

• Normalization of credit in the U.S.

• Increased wages

• Lower interest rates

• Decreased marketing by credit card companies

What is the average credit card interest rate mentioned in the video?

• 10.5%

• 25.7%

• 15.3%

• 20.92%

Which debt repayment strategy involves listing debts from smallest to largest balance?

• Debt Avalanche

• Debt Snowball

• Debt Consolidation

• Balance Transfer

What is the primary benefit of making an additional monthly payment towards credit card debt?

• Increases the interest rate

• Extends the repayment period

• Increases the minimum payment

• Reduces the repayment period and interest paid

What is a balance transfer credit card primarily used for?

• Increasing credit limits

• Transferring balances to a card with a lower interest rate

• Closing old credit cards

• Avoiding all fees

What should you review before applying for a balance transfer credit card?

• Your annual income

• Your credit score

• Your employment history

• Your spending habits

What is a key consideration when opting for a debt consolidation loan?

• The loan's application fee

• The loan's interest rate compared to current credit card rates

• The loan's color

• The loan's repayment period

What is the impact of a hard inquiry on your credit?

• It improves your credit score

• It permanently lowers your credit score

• It has no effect on your credit score

• It can temporarily lower your credit score