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%

Tags

CCSS.8.SP.A.4

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.

Tags

CCSS.RI.8.1

CCSS.RI.8.8

CCSS.RL.11-12.1

CCSS.RL.8.1

CCSS.RL.9-10.1

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.

Tags

CCSS.7.RP.A.3

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