Question

which can cause a person to accumulate debt? check all that apply
business ventures
that were
unsuccessful and
have failed
unexpected
emergencies that
put a strain on a
person’s income
high credit card
balances that
outweigh monthly
income
medical expenses
that have become
unmanageable
unaffordable
payments that
have ballooned
over time

Explanation:

• "business ventures that were unsuccessful and have failed": Unsuccessful business ventures can lead to losses, causing debt as investments or loans taken for the venture can't be repaid.
• "unexpected emergencies that put a strain on a person’s income": Emergencies like medical crises or major repairs can require sudden large expenses, making it hard to cover with income and leading to debt.
• "high credit card balances that outweigh monthly income": If credit card debt is more than what one can pay monthly from income, the debt accumulates with interest.
• "medical expenses that have become unmanageable": Unmanageable medical bills, especially with no insurance or high costs, can lead to debt as they can't be paid off easily.
• "unaffordable payments that have ballooned over time": Payments that are too high initially or grow (e.g., due to interest, late fees) and become unaffordable will lead to debt accumulation.

Answer:

• business ventures that were unsuccessful and have failed
• unexpected emergencies that put a strain on a person’s income
• high credit card balances that outweigh monthly income
• medical expenses that have become unmanageable
• unaffordable payments that have ballooned over time