Question

10 multiple choice 1 point
when should you contact your creditors to discuss your debt?
○ when they contact you
○ when your account goes to collections
○ as soon as you feel your debt could become unmanageable
○ after youve missed one payment
11 multiple choice 1 point
what is the term for the maximum amount of debt your budget can bear?
○ interest rate
○ consolidated debt
○ credit limit
○ debt limit

Explanation:

Question 10

To manage debt effectively, contacting creditors proactively when you sense debt might become unmanageable is best. Waiting for them to contact you, account going to collections, or missing a payment are reactive and less effective approaches.

• Interest rate is the cost of borrowing.
• Consolidated debt is combining debts.
• Credit limit is the max you can borrow on credit.
• Debt limit is the max debt your budget can handle. So the term is debt limit.

Answer:

C. As soon as you feel your debt could become unmanageable

Question 11