Debt Management (Ages 25–35)

What is the best way to manage debt?

• Pay the minimum amount every month

• Ignore loan payments and focus on savings

• Prioritize high-interest debts and pay them off first

• Keep borrowing more loans to pay off old ones

How does having too much debt affect your financial health?

• It lowers your credit score

• It increases your ability to get more loans easily

• It has no impact

• It makes you financially secure

What is a good credit utilization ratio for maintaining a strong credit score?

• 0-30% of your credit limit

• 50-70% of your credit limit

• 80-100% of your credit limit

• It doesn’t matter

Which of the following is a major benefit of paying credit card bills on time?

• Avoiding high interest and late fees

• Increasing total debt

• Extending the payment period indefinitely

• Ignoring your credit score

What is an effective way to avoid excessive debt?

• Spending only what you can afford to repay

• Taking out multiple credit cards

• Borrowing beyond your monthly income

• Paying only the minimum amount on loans