Which of the following may indicate potential debt problems?
A)paying only the minimum balance each month.
B)always borrowing to make it to next payday.
C)your wages have been garnished to pay for debt.
D)your utility company cuts off service because your bills are unpaid.
E)paying only the minimum balance each month, always borrowing to make it to next payday, your wages have been garnished to pay for debt, and your utility company cuts off service because your bills are unpaid.

Question

Quizplus · Accepted Answer

All of the options listed indicate potential debt problems. Paying only the minimum balance each month can result in accruing high levels of interest and taking longer to pay off debt. Always borrowing to make it to the next payday means consistently living paycheck to paycheck, without building savings or paying off debt. Having wages garnished to pay for debt means that creditors have taken legal action to force payment, and having utilities cut off due to unpaid bills suggests a pattern of ongoing financial strain.

Which of the Following May Indicate Potential Debt Problems