From using the right credit card to making strategic payments, there are many methods that can help you reduce credit card debt. Different techniques provide different ways to improve your situation.
Watch the video to learn more about Building a Debt Reduction Strategy, then test your knowledge at the end of the lesson.
In certain cases, you can save money by using a card with a higher APR because it might offer cash back rewards on the product you’re buying.
A. True
B. False
When paying down debt, making only the minimum payments will:
A. Help you pay down one debt at a time
B. Free up funds for discretionary expenses
C. Cost you more in interest over time
D. Create extra cash flow for the holidays
The idea behind the Debt Snowball technique involves:
A. Eliminating highest APR debts first
B. Targeting debts with the lowest balances first
C. Building up debt before you pay it off
D. Checking for rate hikes when applying for new credit