1. What are the warning signs you've got too much debt?
You have less to spend than you used to
You can't sleep because you worry about your bills
You don't have an emergency fund
All of the above
2. Ideally, all your monthly debt, including your mortgage, should amount to no more than how much of your gross income?
3. What's the worst kind of debt you can have?
4. If you make minimum payments on your credit card balance every month:
You're fine and can continue to charge
You can use any money you have left over to invest in stocks
It may take decades and thousands of dollars to pay it off
You risk ruining your credit rating
5. What should you look for on your credit reports?
Charges you didn't make
Accounts you thought you had closed
All of the above
6. When buying a home, you should put every dime you've got toward the down payment.
7. Good debt is:
Borrowing money for anything you really want but can't afford
Borrowing money for anything you really need but can't afford
Borrowing money to pay off your child's debt
8. When should you borrow against a 401(k)?
When you have no other options
When you're young
When you expect to be in a lower tax bracket in retirement
When you plan on quitting your job
9. It's best to take out a home equity loan when:
You want to put in a pool
You want to pay off your credit card debt
You want to renovate your kitchen
You want to take a much-deserved second honeymoon
10. What's more important when taking out a car loan?
You get the monthly payment you asked for
You get a competitive interest rate
In Lesson 9
Debt Reduction Planner
Top things to know
Good debt vs. bad debt
Three examples of good debt
Borrowing for other expenses
Loans to pay credit cards
Managing your debt
Getting your credit reports
Money Essentials Lessons
Making a budget
Basics of banking and saving
Basics of investing
Investing in stocks
Investing in mutual funds
Investing in bonds
Buying a home
Employee stock options
Saving for college
Kids and money
Planning for retirement
Hiring financial help
Buying a car