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Why Is It Important to Carefully Consider Your Credit Cards

Question 101

Multiple Choice

Why is it important to carefully consider your credit cards when developing a budget, financial plan and personal financial objectives?


A) You should include more than the minimum payments in the budget to pay off the balances as soon as possible and minimize interest expense.
B) Evaluate relative interest rates of all cards and other loans, and investments to understand how best to prioritize payments and decide on best use of excess cash flow.
C) A financial plan should really focus on investing excess cash flow for retirement.
D) Both A and B are correct.

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