Question

Claudia makes $30,000 a year. The median income for her state is $28,000. She owes over $50,000 in various debts and is considering ways to address her situation. Which of the following is not one of her options to fix her debt issues?

A) Increase her income through a side job or freelance work.

B) Create a budget and cut unnecessary expenses.

C) Consolidate her debts with a low-interest loan.

D) Donate a portion of her income to charity.

Answer 1

The correct answer is D) Donate a portion of her income to charity. Donating to charity would not directly address Claudia's debt issues. Instead, she should consider options like increasing her income, creating a budget, and consolidating her debts.

Step-by-step explanation:

The correct answer is D) Donate a portion of her income to charity.

Donating a portion of her income to charity would not directly address Claudia's debt issues. While donating to charity is a noble and important action, it would not help Claudia in reducing her debts or improving her financial situation.

To fix her debt issues, Claudia could consider options like:

1. Increasing her income through a side job or freelance work: By earning extra money, Claudia would have more funds to allocate towards paying off her debts.
2. Creating a budget and cutting unnecessary expenses: By carefully monitoring her spending and cutting back on non-essential expenses, Claudia can free up more money to put towards her debts.
3. Consolidating her debts with a low-interest loan: Consolidating her debts into a single loan with a lower interest rate can help Claudia manage her payments more effectively and potentially save on interest costs.