36
practice examMultiple Choice

Practice Exam

Question 36 • Personal Finance

Which is a practical action to take to avoid filing for bankruptcy?

Answer
A
Communicate with creditors to establish a workable payment plan.
B
Secure a low-interest personal loan to pay for regular expenses.
C
Open multiple new credit cards to avoid exceeding credit limits.
D
Deplete all your savings to pay off high-interest credit accounts.

Explanation

Contacting creditors early can help you arrange a payment plan that fits your budget and avoid falling further behind. A low-interest loan for regular expenses can add to debt, and opening multiple cards can make overspending and repayment harder. Using all your savings also leaves you without an emergency cushion.

AI-written and checked against the verified answer.

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