Question

8 multiple answer 1 point
when creating a debt management plan, which of the following should you do? check all that apply.
☐ take advantage of automatic payments that can be set in advance.
☐ send payments for more than the minimum amount due.
☐ pay only the minimum amount due so you have more money for your emergency fund.
☐ calculate your debt - to - income ratio.
☐ only send payments for accounts with the highest balances.
9 true or false 1 point
true or false: creditors may be willing to adjust interest rates or consolidate accounts to make payments more manageable.
○ true
○ false

Explanation:

Question 8

• Take advantage of automatic payments...: Automatic payments help ensure timely payments, good for debt management.
• Send payments for more than the minimum...: Paying more than minimum reduces debt faster (less interest over time).
• Pay only the minimum...: Paying minimum prolongs debt (more interest), bad for management.
• Calculate your debt - to - income ratio: This helps assess financial situation, essential for debt plan.
• Only send payments for accounts with the highest balances: Ignoring other debts can lead to penalties, bad for management.

Creditors often work with borrowers to make payments manageable. Adjusting interest rates or consolidating accounts can reduce the burden on borrowers, increasing the likelihood of repayment. So the statement is true.

Answer:

• Take advantage of automatic payments that can be set in advance.
• Send payments for more than the minimum amount due.
• Calculate your debt - to - income ratio.

Question 9