Final answer:
Interference theory explains forgetting as a result of material competing with what you are trying to recall, either as proactive or retroactive interference.
Step-by-step explanation:
The theory that proposes that people forget information because of competition from other material is interference theory. Interference can manifest in two forms: proactive interference, where old information hinders the recall of newly learned information, and retroactive interference, where newly acquired information interferes with the retrieval of older memories. An example of proactive interference is when you mistakenly tell someone your old phone number instead of the new one. An example of retroactive interference is when you learn about a new psychological theory and it hinders your ability to recall a theory you learned earlier.