ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -There are several benefits of not getting too deep into debt. Debt can drain your cash. Once you free yourself of debt, chances are you will have more money to spend on things you want or enjoy without having to worry about interest payments. Mishandling debt can lead to a bad credit history.
Detailed explanation-2: -Consider whether it affects your ability to put money away for emergency expenses. If you can’t build extra savings, you may go further into debt when life throws a curveball. Also look at how it changes your debt-to-income ratio, which could affect your ability to get credit when you really need it.
Detailed explanation-3: -List everything you owe. Decide how much you can pay each month. Reduce your interest rates. Use a debt repayment strategy. Be diligent moving forward. 31-Dec-2022
Detailed explanation-4: -Stop Borrowing Money. Track Your Spending. Set up a Budget. Create a Plan to Pay Off Debt: Try a Debt Snowball Method. Pay More Than the Minimum Payment. Consider Balance Transfers & Debt Consolidation. Renegotiate Credit Card Debt. Create a Family Budget. More items