The Path to Debt Freedom

What is the FIRST step in paying down your credit card debt?

• Evaluate wants vs needs

• Rank your debts

• Declare Bankruptcy

• Consolidate your debt

Payday loans can be a good option to make it to your next paycheck

• True

• False

You should draw out of your emergency savings to pay off debt

• True

• False

What does "liquidate your assets" mean

• Turn your assets into liquid

• Ask parents and friends for money

• Pull all your money out of savings

• Sell valuables for cash

You should pull from your retirement to pay down debt

• True

• False

You should rank your debts by:

• Size, smallest to largest

• Size, largest to smallest

• Interest, largest to smallest

• Interest, smallest to largest

When you pay down debt, it first goes towards your ____, not towards the original debt amount, which is why you should pay more than the minimum payment

Credit card companies are willing to negotiate your debt with you

• True

• False

You should close accounts once you've paid off your debt

• True

• False

Declaring bankruptcy does not affect your credit and is an ok option to pay down credit card debt

• True

• False