Final answer:
Three options available to the consumer for resolving debt include examining ways to avoid and eliminate credit card debt, evaluating the costs and benefits of declaring personal bankruptcy, and evaluating the costs and benefits of buying insurance.
Step-by-step explanation:
Three options available to the consumer for resolving debt include:
- Examine ways to avoid and eliminate credit card debt - This can include creating a budget, cutting unnecessary expenses, and negotiating lower interest rates with credit card companies.
- Evaluate the costs and benefits of declaring personal bankruptcy - Bankruptcy should only be considered as a last resort, as it can have long-term consequences on credit history. However, for some individuals, it can provide a fresh start and relief from overwhelming debt.
- Evaluate the costs and benefits of buying insurance - Certain types of insurance, such as health insurance or disability insurance, can provide financial protection and help cover medical expenses or loss of income due to illness or disability.