WorksheetsHandling Significant Debt
Total questions: 13
Worksheet time: 7mins
What is the first step you should take when contacted by a debt collector?
Ignore the call
Verify the debt
Pay immediately
Threaten legal action
What is one of the roles of a credit counselor?
Reviews your finances
Provides loans
Sells insurance
Manages investments
What should you be cautious of if a credit counselor requires significant payment up-front?
It is a red flag
It is a sign of trust
It is a common practice
It is a legal requirement.
In a Debt Management Plan, who works with creditors to lower interest rates and late fees?
The debtor
A credit counselor
The bank
A financial advisor
What is a potential downside of debt consolidation?
You can repay your debt in less than a year
You are likely to build up a balance
You can comfortably make the payments
You have a goal to pay off your debt.
Debt consolidation is a smart move if you can get a loan with ______ interest rates.
higher
lower
the same
variable
Which of the following is not a reason to consider debt consolidation?
You can get a loan with lower interest rates
You are likely to build up a balance
You can comfortably make the payments
You have a goal to pay off your debt.
Debt consolidation is a smart move if you can ______ make the payments.
comfortably
barely
never
sometimes
Meeting with a ______ is a step before considering bankruptcy.
credit counselor
lawyer
doctor
teacher
Bankruptcy provides individuals or businesses the opportunity for a:
fresh start
new job
vacation
loan
What is a debt relief/settlement company?
A company that offers loans
A company that says they can renegotiate, settle, or change the terms of a person's debt
A company that collects taxes
A company that provides insurance
Many steps of the debt relief process are out of your control. Which of the following is an example?
Choosing your interest rate
Fees accumulated on your debt
Deciding your payment schedule
Selecting your creditors.
Debt relief programs involve third party account management.
True
False
