Quiz – Understanding Credit & Debt Part 2

1. What does APR stand for?

2. If your credit card has a 20% APR, about how much interest would you pay on a $1,000 balance in one year (if no payments are made)?

3. True or False: Paying your credit card balance in full each month makes the APR irrelevant.

4. The Avalanche Method focuses on paying off:

5. The Snowball Method is best known for giving:

6. True or False: Both Avalanche and Snowball will eventually get you debt-free if you stay consistent.

7. Making only minimum payments each month mostly goes toward:

8. If you stop making payments completely, what happens to your balance?