The Ultimate Tips for a Debt-free-Life Quiz

The Ultimate Tips for a Debt-free-Life Quiz
Image: iStockphoto.com/trekandshoot

About This Quiz

Ever wonder what it would be like to live a debt-free life? More and more Americans are attempting to succeed at this challenge. There are many useful tips that can help you achieve your own debt-free goals.
What debts are considered “good” debts?
mortgage and student loans
Not all debts are bad for your economic future. Consider the benefits of investing in a home mortgage, getting a higher education or taking out a student loan.
credit card and credit line debt
both the above

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What is the average repayment time for an American student loan?
6 years
11years
The average time period for repaying an American student loan is approximately 11 years. This means that most Americans are still paying off their student loans well into their 30s.
16 years

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What is the average debt of an American college grad student?
10000
20000
The average American college debt is nothing to laugh at. Consider that some American college grad students have debt well above the mean of $20,000.
30000

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How much can you save buy bringing your lunch to work every day?
at least $100 per month
at least $200 per month
If you spend a minimum of seven dollars every time you buy lunch, you can save $200 per month in lunch expenses. Try also storing snacks in your office to avoid frivolous spending on munchies.
at least $300 per month

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Which credit debts should you pay off first?
small credit debts
large credit debts
either of the above
Some people recommend paying off large debts first, since these debts carry the highest interest payments. Others recommended paying off smaller debts first. Successfully paying off smaller debts first may increase your motivation for continued debt repayment.

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What type of grocery saving strategy is best?
using coupons
shopping frequently
either of the above
Everyone has their unique shopping style. Some people prefer using coupons. Others prefer shopping frequently, capitalizing on in-store sales.

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What is a good strategy for saving money?
Put your change in a piggy bank each day.
Automatically transfer money into a savings account each month.
Before you pay off any other bills, transfer some money into a savings account at the beginning of each pay period.
both the above

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What is a downside of using a debit card?
identify theft
self-control
both the above
If you want to live within your means, try using cash as much as possible. Most people have replaced cash with a debit card, but debit cards have certain drawbacks, such as identify theft and self-control issues when shopping.

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Many more Americans are trying to reduce their consumerism. How can you begin to live a simpler life?
Buy items to organize your stuff.
Use what you have before you buy more.
Many Americans have stockpiles of items in storage. Try using up these items first before buying new items. This will help reduce your material possessions.
both the above

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A budget should:
be set in stone
A successful budget is well-planned out, taking into consideration all expenses, including extras and the unexpected. If you plan wisely, your budget should be set in stone.
allow for wiggle room
be entirely flexible

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You Got:
/10
iStockphoto.com/trekandshoot

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