Question

feeling overwhelmed with monthly bills, lin got a second job to help pay her debt but has had difficulty writing a budget and still falls short each month. she currently rents her home, and she has credit card bills, student loans, and a car payment.
what step should lin take next?
lin should contact
an attorney to
discuss the
possibility of filing
for bankruptcy
lin should take
out a personal
loan in order to
pay her monthly
expenses.
lin should take
the means test to
see if she qualifies
for chapter 13
bankruptcy.
lin should contact
a credit counselor
to create a
workable debt
management plan.

Explanation:

Lin is struggling with debt and budgeting. A credit counselor specializes in helping create debt management plans, which is a practical first step before considering more drastic measures like bankruptcy or taking on more loans. Filing for bankruptcy (first option) or taking a means test (third) are more extreme, and a personal loan (second) could worsen debt. A credit counselor helps with budgeting and debt strategies.

Answer:

D. Lin should contact a credit counselor to create a workable debt management plan.