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The Ultimate Reasons for Going Into Debt Quiz
by Staff
The reason most people go into debt is simply because they are living beyond their means. Learning some debt management skills may help you achieve financial security. Take this quiz to see how rich or poor your knowledge is of the reasons people go into debt.

Does income or assets determine eligibility for unemployment?

  • only income
  • only assets
  • neither

What percent of Americans spend more than they make?

  • 10 percent
  • 20 percent
  • 40 percent

What are payday loans?

  • a loan from your employer
  • a cash advance against your paycheck
  • a loan due on your payday

What are equity checks?

  • loans without any interest
  • loans without any penalty
  • loans secured by your home

What is an unsolicited offer?

  • an unrequested offer
  • an offer you applied for
  • a scam or gimmick

Which U.S. entity established the Truth and Lending Act?

  • Internal Revenue Service
  • Federal Reserve
  • Federal Deposit Insurance Corporation

How does the Truth and Lending Act help consumers?

  • Creditors are now required to state all interest and fees.
  • Creditors are now required to notify consumers about changes in interest and fees.
  • Both answers are correct.

Why should consumers be wary of the small print on credit offers?

  • Creditors are looking to make a profit from you.
  • Creditors are non-profit institutions.
  • Creditors are on your side.

How do the 2009 U.S. poverty rates compare to other years?

  • lowest
  • steady
  • highest

Why do people with good credit histories receive lower interest rates on their debt?

  • They have higher incomes.
  • They are less or a risk for default.
  • They have more assets.

For the future, what financial model will position you best?

  • saving and paying cash
  • spending and borrowing
  • living month-to-month

In case of an emergency, how much savings do financial advisors recommend that you have?

  • two months
  • six months
  • nine months

What is the average saving rate for U.S. incomes?

  • six percent
  • eight percent
  • 10 percent

If people do not have savings, how do they pay for an emergency?

  • debt
  • family help
  • charity assistance

How can a credit counselor help you with your debt?

  • lower interest rates
  • increase debt
  • pay your debt

What is debt settlement?

  • A lump sum is paid for less than the debt balance.
  • Some of the debt balance is forgiven.
  • Both answers are correct.

How much does debt settlement cost?

  • less than $100
  • from $100s to $1,000s
  • no charge

What is the reason most people get into debt?

  • poor spending habits
  • health emergency
  • unemployment

You have charged $500 on your credit card with an interest rate of 14.7 percent. If you pay $15 every month, how long will it take to pay off the purchase of $500?

  • one year
  • two years
  • four years

If a debt settlement company promises to have a substantial amount of your debt forgiven for a considerable fee, what should you do?

  • Accept it.
  • Be very cautious.
  • Do not accept .