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120 Debt Payoff Methods: Snowball, Avalanche, APR, and Minimums Practice Questions (2026)

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Full Question List

  1. Question 1

    What does debt payoff mean?

  2. Question 2

    What is principal on a loan?

  3. Question 3

    What is interest?

  4. Question 4

    What does APR stand for?

  5. Question 5

    What is a minimum payment?

  6. Question 6

    Why pay more than the minimum?

  7. Question 7

    What is unsecured debt?

  8. Question 8

    What is secured debt?

  9. Question 9

    What is revolving debt?

  10. Question 10

    What is installment debt?

  11. Question 11

    What is the debt snowball method?

  12. Question 12

    Why do people choose the snowball method?

  13. Question 13

    What are the steps of the snowball method?

  14. Question 14

    Who is the snowball method best for?

  15. Question 15

    Does the snowball method minimize interest costs?

  16. How many did you know?

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  17. Question 16

    What happens after the smallest debt is paid?

  18. Question 17

    How do you break a tie between equal balances?

  19. Question 18

    Can the snowball method be used for student loans?

  20. Question 19

    What is a drawback of the snowball method?

  21. Question 20

    How can you speed up the snowball method?

  22. Question 21

    What is the debt avalanche method?

  23. Question 22

    Why do people choose the avalanche method?

  24. Question 23

    What are the steps of the avalanche method?

  25. Question 24

    Who is the avalanche method best for?

  26. Question 25

    Does the avalanche method give quick wins?

  27. Question 26

    What if your highest APR balance is very large?

  28. Question 27

    Can you combine snowball and avalanche?

  29. Question 28

    What is a hybrid payoff method?

  30. Question 29

    How do you choose the priority in avalanche?

  31. Question 30

    What is a common avalanche drawback?

  32. How many did you know?

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  33. Question 31

    What does APR include?

  34. Question 32

    How is daily interest calculated on credit cards?

  35. Question 33

    Why does interest compound?

  36. Question 34

    Why does paying early help reduce interest?

  37. Question 35

    What is a promotional APR?

  38. Question 36

    What happens when a promo APR ends?

  39. Question 37

    What is a penalty APR?

  40. Question 38

    How can you avoid a penalty APR?

  41. Question 39

    What is interest capitalization?

  42. Question 40

    How do you compare two APRs?

  43. Question 41

    Why do lenders prefer minimum payments?

  44. Question 42

    What happens if you only pay minimums?

  45. Question 43

    What is a late fee?

  46. Question 44

    When is a payment considered late?

  47. Question 45

    What is a grace period?

  48. How many did you know?

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  49. Question 46

    Why use autopay for minimums?

  50. Question 47

    What if you cannot make a minimum payment?

  51. Question 48

    Can paying only minimums hurt credit?

  52. Question 49

    What is credit utilization?

  53. Question 50

    How do minimum payments affect utilization?

  54. Question 51

    Why make a debt payoff budget?

  55. Question 52

    What is a zero-based budget?

  56. Question 53

    What is a sinking fund?

  57. Question 54

    How can you free cash for debt payments?

  58. Question 55

    What is debt-to-income ratio (DTI)?

  59. Question 56

    How do you lower your DTI?

  60. Question 57

    What is a payoff date?

  61. Question 58

    Why track spending during debt payoff?

  62. Question 59

    Should windfalls go toward debt?

  63. Question 60

    Why have an emergency fund during payoff?

  64. How many did you know?

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  65. Question 61

    What is a payday loan?

  66. Question 62

    Why are payday loans risky?

  67. Question 63

    What is a cash advance on a credit card?

  68. Question 64

    Why avoid cash advances?

  69. Question 65

    What is deferred interest?

  70. Question 66

    Where is deferred interest often found?

  71. Question 67

    What is balance chasing?

  72. Question 68

    How can you avoid debt traps?

  73. Question 69

    What is subscription creep?

  74. Question 70

    How does subscription creep affect debt payoff?

  75. Question 71

    What is debt consolidation?

  76. Question 72

    What is a benefit of consolidation?

  77. Question 73

    What is a risk of consolidation?

  78. Question 74

    What is refinancing?

  79. Question 75

    When does refinancing make sense?

  80. How many did you know?

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  81. Question 76

    What is a secured consolidation loan?

  82. Question 77

    What is a risk of secured consolidation?

  83. Question 78

    Is a balance transfer a type of consolidation?

  84. Question 79

    What is credit counseling?

  85. Question 80

    What is a debt management plan (DMP)?

  86. Question 81

    What is a balance transfer card?

  87. Question 82

    Why use a balance transfer?

  88. Question 83

    What is a balance transfer fee?

  89. Question 84

    What is a typical balance transfer fee?

  90. Question 85

    What is a 0 percent intro period?

  91. Question 86

    What happens after a 0 percent intro period ends?

  92. Question 87

    What happens if you miss a payment on a promo card?

  93. Question 88

    Can you transfer all your debt to one card?

  94. Question 89

    Should you close old credit cards after a transfer?

  95. Question 90

    What is a best practice after transferring debt?

  96. How many did you know?

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  97. Question 91

    How does paying down debt affect credit score?

  98. Question 92

    Does closing credit cards help your score?

  99. Question 93

    What is a good utilization target?

  100. Question 94

    Do on-time payments help your credit score?

  101. Question 95

    What is a hard inquiry?

  102. Question 96

    Can consolidation lower your score?

  103. Question 97

    Does settling debt hurt your credit score?

  104. Question 98

    How long do late payments stay on a credit report?

  105. Question 99

    Does paying collections help your score?

  106. Question 100

    Why check credit reports during payoff?

  107. Question 101

    What is a hardship plan?

  108. Question 102

    How do you request a hardship plan?

  109. Question 103

    What is debt settlement?

  110. Question 104

    What is a risk of debt settlement?

  111. Question 105

    What does it mean when debt goes to collections?

  112. How many did you know?

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  113. Question 106

    How should you respond to a collector?

  114. Question 107

    What is a debt validation letter?

  115. Question 108

    Should you give collectors direct access to your bank?

  116. Question 109

    What is the statute of limitations on debt?

  117. Question 110

    When should you seek legal advice about debt?

  118. Question 111

    Why track debt payoff progress?

  119. Question 112

    What is a debt payoff chart?

  120. Question 113

    How should you celebrate payoff milestones?

  121. Question 114

    What is a spending trigger?

  122. Question 115

    How can you reduce spending triggers?

  123. Question 116

    What does accountability mean in debt payoff?

  124. Question 117

    How can you avoid going back into debt?

  125. Question 118

    What should you do if you miss a payment?

  126. Question 119

    How do you choose the right payoff method?

  127. Question 120

    What is the most important payoff rule?

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