Prevent Debt
Is knowing that debt is dangerous enough to keep you out of debt?
NO, you need strategies to keep you from falling into debt
If you're already in the thick of extreme debt. What should you do?
Don't freak out, there are ways to get out of existing debt
What is an example of good debt?
Student Loans, Mortgages, or Business Loans
What is an example of bad debt?
Credit card debt, Pay day loans, or Vehicle debt
What are some strategies to preventing unnecessary debt?
An emergency fund, use credit card sparingly, and regularly check your spending
What are the biggest methods to get out of debt?
The debt avalanche method or the debt snowball method
What is good debt?
A tool for constructing your future
What is bad debt?
The kind that drags you all the way down to debt. Usually involving purchases that don't increase in value
How do credit cards make it so easy to fall into debt?
If you have multiple credit cards, it is easy to lose track of your spending and end up owing more than you can fully pay
What are small methods to get out of debt?
Debt consolidation or balance transfer (if you have good credit score)
What can good debt lead to?
Increased income and financial success
What can bad debt lead to?
Can create a cycle of debt that's hard to escape
Marcus is in extremely deep student debt, that he CANNOT handle. Is it good debt or bad debt?
BAD DEBT. Even though student debt originally is good debt, it can be too hard to handle and become bad!
Why is preventing debt important?
Preventing debt helps people avoid financial stress and problems with their credit card(s)
What are borrowers?
Borrowers can be people or businesses that take money from a lender with the agreement that they will pay it back later
Can good debt become bad debt?
Yes, good debt may become bad if the borrower cannot afford their payments.
What is a payday loan?
A payday loan is a short-term loan with very high interest rates
If you don't borrow....? (Finish the sentence)
Chances are you won't be suplexed by debt
What are lenders?
Lenders are people or banks that give money to someone with the agreement that it will be paid back later, most commonly with interest.
What is the difference between good debt and bad debt?
Good debt helps create long-term financial benefits. Bad debt usually pays for things that lose value quickly.
Can bad debt be avoided?
Yes, you can avoid bad debt by budgeting, saving money, and only using credit cards when there is an emergency