Quiz 3: Debt Management

Question 1: What is the "debt snowball" method?

a) Paying off the smallest debt first to gain momentum

b) Paying off the debt with the highest interest rate first

c) Consolidating all debts into one loan

d) Avoiding all forms of debt

Question 2: Which of these is a form of secured debt?

a) Credit card debt

b) Personal loan

c) Mortgage

d) Student loan

Question 3: What is a good debt-to-income ratio?

a) Above 50%

b) Below 36%

c) It doesn't matter

d) The higher, the better