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QuizMultiple Choice

Debt Management

Question 1 • [PERFIN] Personal Finance, Sem 2 (26-27)

Which of the following is least likely to be a warning sign that one's debt is at a critical point?

Answer
A
all credit cards are at their limits
B
having several credit cards
C
making only minmum payments on credit cards
D
using cash advances to pay bills

Explanation

Having several credit cards by itself does not necessarily mean someone’s debt is at a critical point; the person might manage them responsibly. By contrast, maxed-out cards, making only minimum payments, and using cash advances to pay bills are signs of serious financial strain. So “having several credit cards” is least likely to be a warning sign.

AI-written and checked against the verified answer.

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