QuestionJuly 17, 2025

Which of the following are a warning sign of too much debt? a. Repeatedly receiving overdue bill notices. b. Having no option but to pay with credit rather than with cash. c. Routinely spending as much as you earn. d. Missing a payment on one bill in order to pay another.

Which of the following are a warning sign of too much debt? a. Repeatedly receiving overdue bill notices. b. Having no option but to pay with credit rather than with cash. c. Routinely spending as much as you earn. d. Missing a payment on one bill in order to pay another.
Which of the following are a warning sign of too much debt?
a. Repeatedly receiving overdue bill notices.
b. Having no option but to pay with credit rather than with cash.
c. Routinely spending as much as you earn.
d. Missing a payment on one bill in order to pay another.

Solution
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Answer

a, b, d Explanation 1. Identify Warning Signs Analyze each option to determine if it indicates financial distress related to excessive debt. - **Option a**: Repeatedly receiving overdue bill notices indicates inability to pay bills on time, a clear warning sign. - **Option b**: Relying on credit instead of cash suggests insufficient cash flow, another warning sign. - **Option c**: Spending as much as you earn does not necessarily indicate debt issues unless expenses exceed income. - **Option d**: Missing payments to cover others shows poor financial management and is a warning sign.

Explanation

1. Identify Warning Signs<br /> Analyze each option to determine if it indicates financial distress related to excessive debt.<br /><br />- **Option a**: Repeatedly receiving overdue bill notices indicates inability to pay bills on time, a clear warning sign.<br />- **Option b**: Relying on credit instead of cash suggests insufficient cash flow, another warning sign.<br />- **Option c**: Spending as much as you earn does not necessarily indicate debt issues unless expenses exceed income.<br />- **Option d**: Missing payments to cover others shows poor financial management and is a warning sign.
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