Question

in chet’s example of debt repayment, he forgot a medical debt of $3,500, with 4% interest. with the debt snowball method, he would start extra payments on this debt after paying off... his first credit card his personal loan his second credit card his student loan

Explanation:

The Debt Snowball method focuses on paying off debts from smallest to largest balance (regardless of interest rate) and then applying extra payments to the next smallest debt. However, if we consider the Debt Avalanche method (paying off highest interest first) or the context here, but the question is about which debt he starts extra payments on after paying off... Wait, the key is that in the Debt Snowball (or maybe the scenario here), after paying off a debt, the extra payments go to the next debt. But the options are about which debt. Wait, the medical debt is $3500 with 4% interest. But the options are his first credit card, personal loan, second credit card, student loan. Wait, maybe the question is incomplete, but from the options, if we assume the medical debt is paid off, and then he starts extra payments on the smallest remaining debt? Wait, no, maybe the original question is about which debt he would start extra payments on after paying off the medical debt. But the options: His personal loan (the selected one in the image). Wait, maybe the logic is that after paying off the medical debt, he moves to the next debt, and in the options, "His personal loan" is the one. Wait, maybe the question is about the Debt Snowball method, where you pay off the smallest debt first, then apply the payment to the next. But the medical debt is $3500. Then after paying that, he starts extra payments on his personal loan (the option with the yellow dot). So the correct answer is the one with "His personal loan".

Answer:

His personal loan (the option with the yellow - filled circle, labeled "His personal loan")