PF: Chapter 4 Lesson 6 Getting and Staying Out of Debt

What percentage of Americans live paycheck to paycheck?

• 22%

• 56%

• 78%

• 91%

What is the Second Foundation for achieving a debt-free lifestyle?

• Save a $500 emergency fund

• Get out and stay out of debt

• Pay off all debts as quickly as possible

• Avoid debt throughout your life

What percentage of Americans believe health care is worth going into debt for?

• 61%

• 37%

• 16%

• 11%

What is the first step to get out of debt?

• Save a $500 emergency fund

• Get a part-time job or work overtime

• Sell something

• Start saving money

What is the Debt Snowball Method?

• Paying off debts with the highest interest rates first

• Paying off debts with the smallest balance first

• Paying off debts in the order they were acquired

• Paying off debts randomly

What does debt steal from you?

• Hope for your future

• Ability to be generous

• Financial security

• Opportunity to build wealth

What is the recommended approach to giving when in debt?

• Give large amounts of money

• Give small amounts of money or time

• Don't give until debt is fully paid off

• Give only to family and friends

What is the main benefit of living a debt-free lifestyle?

• Financial security

• Ability to buy whatever you want

• Freedom to give generously

• Opportunity to travel the world

What is the recommended action to take if you have a car payment?

• Keep making the payments

• Sell the car and buy a new one

• Sell the car and save up to buy an affordable used car

• Take out a loan to pay off the car

What percentage of Americans have 4 or more credit cards?

• 37%

• 28%

• 16%

• 19%