Question

12 true or false 1 point
true or false: there are 5 key steps in a debt reduction action plan.
○ true
○ false
13 multiple choice 1 point
which debt do you concentrate on first if you use the debt snowball method?
○ the debt with the highest balance
○ the debt with the highest interest rate
○ the debt with the lowest interest rate
○ the debt with the lowest balance

Explanation:

Question 12 (True or False)

A debt reduction action plan typically has 5 key steps (e.g., assess debt, set goals, create budget, choose strategy, track progress). So the statement is True.

The Debt Snowball Method focuses on paying off the debt with the lowest balance first. This provides psychological motivation as it's quicker to eliminate, then move to the next lowest balance.

Answer:

True

Question 13 (Multiple Choice)