Question 18
Prioritizing multiple financial milestones often requires trade-offs. For example, should you save for a down payment while carrying high-interest credit card debt? Many advisors suggest addressing high-interest debt before large savings because carrying such debt costs more in the long run. But personal context (job security, emergency fund status) can change that advice. This question tests recognition of the general trade-off and typical prioritization approach used in planning.
Which is generally a sensible priority when you have high-interest consumer debt and a down payment goal?
Did You Also Know...
By Wise Wallet
Paying only the minimum on credit cards can stretch repayment for years and multiply the total interest paid.