debt Flashcards
1
Q
what is regular debt
A
manageable debt
2
Q
what is excessive debt caused by (2)
A
- lack of emergency planning, unforeseen circumstances
- lack of budget, overspending, too many loans
3
Q
what is excessive debt
A
greater than 35% of income /beyond ability to repay
4
Q
what does excessive debt have a negative impact on (3)
A
relationships, health, lifestyle
5
Q
what are solutions to excessive debt (5)
A
- strict budget
- increase income
- stop using credit cards
- renegotiate loan contracts (avoid defaults)
- debt consolidation
6
Q
what is debt consolidation
A
combination of debts & pay with bank loan so only 1 debt is to pay instead of managing multiple debts
7
Q
what is a good way to get good financial literacy
A
get financial counselling
8
Q
what is the household debt in CA
A
2.5 trillion
