How Good Are You With Debt?

Whether you owe a dollar or a million bucks, you need to make good financial decisions to have a secure future. Take this quiz to find out how debt smart you are!

1

Do you have a list of debt accounts?

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- I don't because I haven't been in debt for 20 years.
- My last debt list was 5 years ago.
- I have a list that seems to grow by the minute.
- I have a drawer where I stuff all the bills in.
2

Do you prioritize your debts?

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- I prioritize investments, not debts.
- I have prioritized my debts and erased more than half the amount in a year's time.
- I pay the easiest looking bill.
- I let my husband/wife/parents do the math.
3

What are non-priority debts?

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- They are accounts that can wait.
- credit card payments
- the money I owe my parents
- everything is non-priority
4

Do you have a personal budget?

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- I have no budget but I have good investing habits.
- I have a diciplined but flexible budget that provides for my essential needs.
- I'm trying to limit my spending, but sales get the better of me sometimes.
- I want to be free to spend my money on whatever I like.
5

What are priority debts?

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- accounts with legal commitments
- house payments
- credit card bills
- spending is the most important priority to me
6

What is good debt?

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- accounts that create value
- mortgages
- all debts are bad
- there are no good debts, they're all the same
7

What is a bad debt?

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- accounts that have no long term value
- debts that pay for luxuries
- any debt is bad
- all debts are the same
8

Which debts should be paid first?

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- priority debts
- mortgages
- any bill with the nearest due date
- they all can wait
9

Can debts be consolidated?

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- Debts can be consolidated if a single loan (to pay off the rest) has the best terms.
- Yes, but it can be tricky.
- I don't know.
- Debts are all the same.
10

Why do people fall into debt?

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- People get into debt because of poor money management decisions.
- People borrow more money than what they can afford to pay off.
- Times are hard.
- It's only natural.
11

What are bad purchases?

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- Anything that loses value.
- Anything you don't need.
- Everything is a bad purchase when you have a big debt.
- I don't know.
12

What are good purchases?

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- Anything that can have long term value.
- houses
- vacations
- everything is good
13

Can debt be avoided?

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- Yes, but you have to have a lot of income for that.
- No, but it can be managed to help people pay for stuff they need.
- I wish.
- It's not such a bad thing.
14

How do credit cards work?

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- They offer repayments with little or no interest, but they include service fees.
- You can use them for bigger purchases.
- They are like money.
- Credit cards can buy me anything I want.
15

How does store credit work?

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- A store account offers clients a ten to twenty percent discount on store purchases.
- A store account that offers discounts.
- It works like a discount sale.
- They work like credit cards.
16

What is income?

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- A financial gain over a period of time.
- Anything that I earn.
- If its in my hands, its income.
- I just ask for money, I don't earn it.
17

What are creditors?

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- A person or party that extends credit so that a borrower can pay at an agreed date.
- Banks
- Anyone I owe money to.
- I don't know.
18

What are debt management companies (DMCs)?

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- An organization that negotiates with non-priority creditors on a borrower's behalf.
- They help negotiate smaller payments to creditors
- I don't know.
- I don't care.
19

What is bankruptcy?

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- A declaration of inability to pay.
- It is filed by people who can't afford to pay their debts anymore.
- I don't know what it really means, but I know I will soon be bankrupt if I don't do something.
- I don't know.
20

What is a debt management plan?

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- It is a personal loan restructuring plan that can be agreed on by creditors and their borrowers.
- It's a payment plan.
- I don't have one.
- I don't need one.