Spring 2025 EPF Test 2 Honors

What is the maximum percentage of your monthly net income that should go towards monthly mortgage payments, including insurance and tax, according to the 20/10 Rule?

According to the 20/10 Rule, what types of debt should be kept below 20% of your yearly net income? Options: Mortgage only, Credit card, student loan, and mortgage, Credit card, student loan, car loan, and personal loan, Car loan and personal loan only

After reviewing your expenses and income, what is the next step in managing debt repayment?

Which of the following is a recommended strategy for reducing spending?
Options:
Reduce spending abruptly,
Reduce spending gradually,
Increase spending on non-essentials,
Do not monitor spending habits

What is a suggested action to take regarding your home environment to help manage debt? Options: Increase the heat/cool to maximum levels, Never clean or organize your home, Rent out a room in your house

How can you reduce waste and manage debt according to the suggestions?

After paying off the debt with the highest interest rate in the debt avalanche strategy, you .

What is the purpose of debt consolidation?

What can a non-profit credit counseling agency help you set up?

Which of the following budget categories is recommended to allocate 25-35 percent of your budget? Food, Housing, Utilities, Recreation & Entertainment