WorksheetsLesson 6 Day 2 Mastering Debt
Total questions: 17
Worksheet time: 9mins
Is debt always bad for your credit score?
Yes, debt is always bad for your credit score
No, debt can be good or bad depending on how it is managed
Debt does not affect your credit score
Only large amounts of debt are bad
Which of the following is a way to handle debt?
Ignore your debt
Make regular payments to reduce your debt
Take on more debt without a plan
Never check your credit score
Why is it important to sit quietly after finishing the "Do Now" activity?
To avoid disturbing others who are still working
To get extra credit
To start a conversation with the teacher
To leave the classroom early
Who do creditors hire to recover the money when payments are missed?
A company
A lawyer
A friend
A bank
What is a potential consequence of having a debt sent to collections?
It can improve your credit score
It can impact your credit score negatively
It will erase your debt
It will increase your payment options
What is debt consolidation?
Taking out a new loan to pay off several smaller debts, resulting in one monthly payment.
Borrowing more money without paying off any debts.
Ignoring all debts until they are forgotten.
Paying off one debt at a time without any new loans.
If you owe $2,000 on three different credit cards, how much would you consolidate into one loan?
$2,000
$4,000
$6,000
$8,000
Credit counseling is usually:
Free or low-cost.
Very expensive.
Only available online.
Only for people with no debts.
What is one risk associated with using a debt settlement company?
They may charge fees and not guarantee a settlement.
They always pay off your debt in full.
They increase your credit score immediately.
They provide free services.
If you owe $10,000 and a debt settlement company convinces your creditors to accept $7,000, how much of your debt is settled?
$7,000
$10,000
$3,000
$5,000
Explain why debt settlement companies might not always be a safe option for managing debt. Use evidence from the information provided.
They charge fees, may not guarantee a settlement, and stopping payments can result in more debt problems.
They always reduce your debt without any risks.
They are government-approved and free of charge.
They help you save money with no consequences.
What is bankruptcy?
A legal process that helps you cancel or reduce your debts
A way to increase your savings
A method to earn more income
A type of investment plan
When should bankruptcy be considered?
When other methods don’t work
As the first option for financial problems
Whenever you want to avoid paying taxes
When you want to buy a new house
What is a possible consequence of declaring bankruptcy?
It can seriously impact your financial future
It guarantees you will be debt-free forever
It increases your credit score immediately
It allows you to avoid all financial responsibilities
Why is bankruptcy considered a last resort for dealing with debt?
Because it can have serious long-term effects on your financial future
Because it is the easiest way to solve financial problems
Because it is required by law before any other method
Because it always results in more money for you
How long can bankruptcy impact your life?
1 to 2 years
3 to 5 years
7 to 10 years
15 to 20 years
What are some possible consequences of declaring bankruptcy?
You may receive more loan offers
You may have trouble getting approved for housing
Your credit score will immediately improve
You will be able to buy a house easily
