A Method Not Recommended for Getting Out of Excessive Credit

question 132

Multiple Choice

A method not recommended for getting out of excessive credit card debt is to

• A)negotiate with your creditors to lower your payments and interest rates.
• B)consider transferring existing balances on high-interest rate accounts to an account with a lower interest rate.
• C)pay the minimum amount due on your high interest-rate cards, and pay as much as possible on the lowest interest-rate cards.
• D)not open new credit accounts or accept any new credit offers.

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Definitions:

Payments In Kind

Transactions where the payment is made in goods, services, or other non-cash forms instead of monetary payment.

Retained Earnings

The portion of net income that a company retains instead of distributing to shareholders as dividends, often used for reinvestment in the business or to pay off debt.

Cumulative Voting

A voting system used in corporate elections that allows shareholders to allocate their votes in any preferred proportion among the candidates, enhancing the voting power of minority shareholders.

Votes Cast

The total number of votes made by shareholders or members in an election or decision-making process.