Compare debt consolidation without missing the fees: test your skills
Combining debts can lower the rate or simplify payments — or quietly cost more. Compare total cost, not the monthly payment. Answer each question to see the explanation; your score appears at the end.
This test checks that you can
- Compare consolidation options on total cost
- Spot when a lower payment costs more
- Avoid re-borrowing on cleared cards
- Practice
1. What should you compare between offers?
- Practice
2. What is the main consolidation trap?
- Practice
3. Refinancing federal student loans privately…
- Key idea
4. Which statement best explains "Total cost beats monthly payment"?
- Key idea
5. Which statement best explains "Consolidation is not repayment"?
- Key idea
6. Which statement best explains "Promotions end"?
- Action plan
7. In the action plan, which step comes first?
- Mistake to avoid
8. Which of these is a mistake this lesson warns against?
- Mistake to avoid
9. Which of these is a mistake this lesson warns against?
Transfer $3,000 with a 4% fee to a 0% rate for 12 months. What monthly payment clears it in the promotion?
Show the answer
$260
Fee $120. $3,120 ÷ 12 = $260.
For your largest debt, write its rate and the total you would pay over the remaining term.
More tests in this bootcamp
- Judge debt by its purpose, rate and total cost
- Choose a debt payoff plan: avalanche or snowball
- Compare debt consolidation without missing the fees
- Use credit cards without carrying interest
- Understand what moves your credit score
- Check your credit report and question errors
- Protect your identity and know the recovery steps
- Respond to debt collectors with records and confidence
- Understand your student loan repayment options
- Compare car loans beyond the monthly payment
- Decode your mortgage payment: principal, interest, taxes and insurance
- Final exam: Debt and credit