GFEBS Debt Management Questions
and Answers | Latest Update | 2024/2025
| Already Passed
What is the primary goal of debt management?
✔✔ The primary goal is to effectively handle and repay outstanding debts while maintaining
financial stability.
What are common strategies for managing debt?
✔✔ Common strategies include creating a repayment plan, consolidating debts, and negotiating
better terms with creditors.
Why is it important to monitor debt levels regularly?
✔✔ Monitoring debt levels regularly helps ensure that repayment schedules are being met and
prevents overextension of credit.
What role does budgeting play in debt management?
✔✔ Budgeting helps allocate funds for debt repayment and ensures that spending does not
exceed income.
1
,How can individuals prioritize their debts effectively?
✔✔ Individuals can prioritize debts by focusing on high-interest or high-priority debts first while
making minimum payments on others.
What is a debt repayment plan, and why is it useful?
✔✔ A debt repayment plan outlines how much money will be allocated to each debt and helps
track progress toward becoming debt-free.
How can debt consolidation benefit someone managing multiple debts?
✔✔ Debt consolidation combines multiple debts into one loan with a lower interest rate,
simplifying payments and potentially reducing overall interest costs.
What is the impact of missed debt payments on credit scores?
✔✔ Missed debt payments can negatively impact credit scores by indicating poor financial
management and increasing interest rates on future credit.
How can negotiating with creditors help in debt management?
✔✔ Negotiating with creditors can lead to reduced interest rates, extended repayment terms, or
settlements for less than the owed amount.
2
, What are some signs that debt management might be needed?
✔✔ Signs include difficulty making minimum payments, frequent use of credit cards for
necessities, and accumulating unpaid bills.
How does tracking interest rates affect debt management?
✔✔ Tracking interest rates helps identify opportunities for refinancing or consolidating debt to
lower overall interest costs.
What are the benefits of a debt management plan (DMP)?
✔✔ A DMP can provide structured repayment schedules, lower interest rates, and eliminate late
fees while simplifying the management of multiple debts.
How can automatic payments assist in managing debt?
✔✔ Automatic payments ensure that debts are paid on time, reducing the risk of missed
payments and associated penalties.
Why is it important to review debt management strategies regularly?
3
and Answers | Latest Update | 2024/2025
| Already Passed
What is the primary goal of debt management?
✔✔ The primary goal is to effectively handle and repay outstanding debts while maintaining
financial stability.
What are common strategies for managing debt?
✔✔ Common strategies include creating a repayment plan, consolidating debts, and negotiating
better terms with creditors.
Why is it important to monitor debt levels regularly?
✔✔ Monitoring debt levels regularly helps ensure that repayment schedules are being met and
prevents overextension of credit.
What role does budgeting play in debt management?
✔✔ Budgeting helps allocate funds for debt repayment and ensures that spending does not
exceed income.
1
,How can individuals prioritize their debts effectively?
✔✔ Individuals can prioritize debts by focusing on high-interest or high-priority debts first while
making minimum payments on others.
What is a debt repayment plan, and why is it useful?
✔✔ A debt repayment plan outlines how much money will be allocated to each debt and helps
track progress toward becoming debt-free.
How can debt consolidation benefit someone managing multiple debts?
✔✔ Debt consolidation combines multiple debts into one loan with a lower interest rate,
simplifying payments and potentially reducing overall interest costs.
What is the impact of missed debt payments on credit scores?
✔✔ Missed debt payments can negatively impact credit scores by indicating poor financial
management and increasing interest rates on future credit.
How can negotiating with creditors help in debt management?
✔✔ Negotiating with creditors can lead to reduced interest rates, extended repayment terms, or
settlements for less than the owed amount.
2
, What are some signs that debt management might be needed?
✔✔ Signs include difficulty making minimum payments, frequent use of credit cards for
necessities, and accumulating unpaid bills.
How does tracking interest rates affect debt management?
✔✔ Tracking interest rates helps identify opportunities for refinancing or consolidating debt to
lower overall interest costs.
What are the benefits of a debt management plan (DMP)?
✔✔ A DMP can provide structured repayment schedules, lower interest rates, and eliminate late
fees while simplifying the management of multiple debts.
How can automatic payments assist in managing debt?
✔✔ Automatic payments ensure that debts are paid on time, reducing the risk of missed
payments and associated penalties.
Why is it important to review debt management strategies regularly?
3
