NGPF 8.1-8.2 Managing Debt and Boxplots

What percentage of Americans with credit card debt won't be able to pay it off within a year?

• 50%

• 70%

• 25%

• 10%

According to the graph, which type of debt has the second-highest percentage increase after student loans?

• Auto Loan

• Mortgage

• HE Revolving

  (Home Equity

  Lines of Credit)

• Credit Card

What type of loans could result in the seizure of your property if you fail to make payments on time?

• Student Loans

• Tax Debt

• Mortgages

• Credit Card Debt

• Auto Loans

Which type of loan can lead to wage garnishment if not paid on time?

• Auto Loans

• Child Support

• Mortgages

• Student Loans

• Tax Debt

What is one of the reasons payday loans can trap consumers in a cycle of debt?

• They have a long repayment period.

• They offer lower interest rates compared to other loans.

• They are due in a short time in full, with higher fees and interest rates.

• They are only available to high-income earners.

What is a common outcome of Asset Based Lending and Equity Stripping in Predatory Lending?

• It may lead to borrower satisfaction due to increased asset value.

• It may lead to borrower obtaining better interest rates in the long run.

• It may lead to borrower losing their home or their car.

• It may lead to borrower receiving financial education.

What is the first step in beginning to manage your debt?

• Finding a debt counselor to discuss your options.

• Making a budget to reduce your expenses.

• Finding out how much you owe so you can make a plan.

• Consolidating all your debts into one payment.

What is the recommended minimum action to take with your debts?

• Paying off the debt with the highest interest rate first.

• Making at least the minimum payments and always paying on time.

• Transferring your debt to a credit card with a lower interest rate.

• Borrowing money from friends or family to pay off the debt.

Which options could you explore if you find yourself overwhelmed with debt and unable to make all your payments?

• Taking out a payday loan to cover the payments.

• Ignoring the debts until you have enough money to pay.

• Credit Counseling, Debt Consolidation, Debt Settlement, Bankruptcy.

• Only paying the debts with the highest interest rates.

Which accurately compares the interest and payback term of the debt avalanche vs. snowball methods?

• The avalanche pays more interest and has a longer term than the snowball

• The avalanche pays more interest and has a shorter term than the snowball

• The avalanche pays less interest and has a longer term than the snowball

• The avalanche pays less interest and has a shorter term than the snowball