Question

Edelman says that when developing a plan to get out of debt, you should prioritize which debts to pay first by ________.

a) Size of the debt
b) Interest rate
c) Age of the debt
d) Total income

Answer 1

Edelman suggests prioritizing which debts to pay first based on the interest rate to save money on interest payments.

Step-by-step explanation:

When developing a plan to get out of debt, Edelman suggests prioritizing which debts to pay first based on the interest rate (option b). By focusing on higher interest rate debts, you can minimize the amount of money you spend on interest payments and save more in the long run. It is important to note that while the size of the debt, age of the debt, and total income can also be factors to consider, prioritizing by interest rate is a common strategy to efficiently pay off debts.