alleryStart learning →When money is short, what does prioritizing bills actually mean?
AWhich bills to pay in full, in part, or late
BWhich bills you are allowed to stop paying
CWhich creditors you should avoid contacting
DWhich bills to fold into a single new loan
Answer & Solution
Correct answer: A. Which bills to pay in full, in part, or late
1. Prioritizing sets the order of payment, not the list of what is owed.
2. Each bill is assigned to be paid in full, paid partially, or paid late.
3. That choice is made by weighing what happens if the bill goes unpaid.
4. Nothing is written off, so no bill can simply be stopped.
5. Contacting creditors early is encouraged, because they may allow extra time to pay.
_Source: FDIC Money Smart for Adults (September 2018), Module 4: Your Spending and Saving Plan, section Prioritizing Based on What Might Happen_
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