Test your knowledge about financial recovery

Editor Debt-Credit Consolidation December 2, 2023

Test your knowledge about financial recovery

 

1. If you are experiencing financial difficulties, what first steps should you take before developing a financial recovery plan? Select all that apply.
   1. Develop a spending plan
   2. File for bankruptcy
   3. c.     Track your spending
   4. d.     Assess your current financial situation

 

1. Which of the following are ways you can increase your income without negatively impacting your financial future or financial recovery plan? Select all that apply.

1. Take money out of your retirement or investment accounts to pay off debt
2. Rent out an extra bedroom in your home
3. Use your talents or hobby to make extra money
4. Make sure you receive any tax credits for which you are entitled

 

1. Which of the following are ways you can decrease your expenses without negatively impacting your financial future or financial recovery plan? Select all that apply.
   1. Buy items you want but do not need
   2. b.     Use local assistance programs to offset food, housing, and utility costs
   3. c.     Eat out at restaurants less frequently  
   4. Sell assets (e.g., an extra vehicle, furniture, or jewelry)

 

1. When prioritizing your expenses, which of the following expenses should you pay first?
   1. a.     Your basic necessities (e.g., mortgage/rent, food, utilities, transportation)
   2. Credit card bills
   3. Collection agency bills
   4. Other expenses or loans (e.g., medical bills, education loans, personal expenses)

 

1. Which of the following actions can help you build your credit and prevent future financial setbacks?
   1. Save money
   2. Review your credit report and correct any errors
   3. Work with your creditors when you cannot make your payment
   4. Ask for assistance when needed
   5. e.     All of the above

 

 

1. Select all that apply. You can guard against credit repair scams by:
   1. a.     Avoiding companies that ask for payment before services are provided
   2. b.     Checking for complaints filed against the credit repair company with your local Better Business Bureau
   3. Avoiding organizations that tell you your rights and ways you can repair your own credit
   4. d.     Avoiding companies that advertise fast and easy credit repair solutions

 

1. How frequently should you review and adjust your financial recovery plan?
   1. Every month
   2. Every six months
   3. Every 12 months
   4. d.     As needed, but at least every 12 months