Week 4 Debt Quiz Results
- December 23, 2020
Here are the results from our fourth holiday savings quiz! Scroll through to see what members answered and take the quiz yourself.
1. I pay off my credit card balances every month.
Paying off your credit card debt every month can save you hundreds—or in some cases thousands—of dollars in interest. This interest you are paying is extra money you are giving to a credit card company, helping the corporation become financially stable instead of yourself.
2. I have a written plan to pay off my debts.
As the saying goes, “If you fail to plan, you plan to fail.” Having a plan to pay off debt helps you prioritize your spending and helps to keep you focused. For tips on paying off debt, read What’s The Best Way To Pay Off Debt?
3. I know exactly how much debt I have and my interest rates.
You cannot control what you do not measure. The first step to paying off your debts is to do an inventory of your debts, the amounts you owe, payments, and your interest rate. If you’ve consistently been making on-time payments, consider calling and asking your creditor to lower your interest rate.
4. My debt is manageable.
Ideally, you should be able to pay off your credit cards monthly. If you are carrying a balance, and it’s not due to a drop in income, it may be a sign that you are living beyond your means. If you struggle to pay your debt’s minimum it’s definitely a sign that your debts are unmanageable. Consider reviewing the blog What’s the best way to pay off debt to create a debt payoff plan.
5. I feel confident that I can pay off my debts.
If you do not feel confident you can pay off your debts, remember small amounts add up over time. Even if you can only pay $25 extra a month, it’s a start. Commit to not increasing your expenses until your debts are paid off. Commit additional money (once you have savings) to pay off debt.
6. What are some debt payoff strategies?
The best way to pay off debt is the one you will follow! If you need quick wins, consider the debt snowball; if you are tired of paying interest, consider the debt avalanche. Read How to Pay Down Your Debt to help you pick the best debt payoff strategy for you. You can also use a debt calculator to come up with a debt repayment strategy.
7. Why should you pay off your credit card balance monthly?
Paying off your credit card balance monthly can save you money and potentially increase your credit score.
8. According to USA Today, the average American consumer has $6,194 in credit card debt. With an average interest rate of 16.88%, how much money is the average American paying annually to their credit card company in interest?
Paying credit card interest robs you of money you can use to fund your financial goals.