Credit cards and debt quiz

All 10 questions and answers

Want to check an answer or run the quiz out loud? Every question is here, with the answer hidden until you open it.

1. When is interest usually charged on credit card purchases?
   • Never
   • When the full closing balance isn't paid by the due date
   • Only on cash withdrawals
   • Only on weekends
   Show answer

   When the full closing balance isn't paid by the due date. Paying in full keeps your interest-free days.

2. Paying only the minimum repayment usually means…
   • Paying no interest
   • Improving your income
   • Taking much longer to clear the debt and paying more interest
   • Clearing it faster
   Show answer

   Taking much longer to clear the debt and paying more interest. Most of a minimum payment can go on interest.

3. The 'avalanche' method pays off which debt first?
   • The newest debt
   • The one with the highest interest rate
   • The oldest debt
   • The smallest balance
   Show answer

   The one with the highest interest rate. It saves the most interest overall.

4. The 'snowball' method pays off which debt first?
   • The largest balance
   • The mortgage
   • The smallest balance
   • The highest interest rate
   Show answer

   The smallest balance. Quick wins can help motivation.

5. What is a balance transfer?
   • A loan to buy shares
   • Paying off a card in cash
   • Moving a card debt to another card, often at 0% for a while
   • A bank fee
   Show answer

   Moving a card debt to another card, often at 0% for a while. Watch out for the rate that applies when the offer ends.

6. How often can Australians get a free copy of their credit report from each bureau?
   • Never
   • Once in a lifetime
   • Every 5 years
   • Every 3 months
   Show answer

   Every 3 months. Equifax, Experian and illion all provide free reports.

7. Which free service helps Australians struggling with debt?
   • Scamwatch
   • Medicare
   • The ATO
   • National Debt Helpline (1800 007 007)
   Show answer

   National Debt Helpline (1800 007 007). Financial counsellors there are free and confidential.

8. Buy now, pay later services can charge…
   • Nothing ever
   • Interest to the shop
   • Late fees if you miss a payment
   • GST twice
   Show answer

   Late fees if you miss a payment. Missed payments can add up quickly.

9. Payday loans are usually…
   • Government grants
   • A very expensive form of credit
   • Interest-free
   • The cheapest loans
   Show answer

   A very expensive form of credit. Look at other options first.

10. On a $5,000 card debt at about 21%, roughly how much interest is added in the first month?
    • About $87
    • About $10
    • About $210
    • About $1,050
    Show answer

    About $87. 21% ÷ 12 is about 1.75% a month.