Weathering a Financial Crisis

Weathering a Financial Crisis

Are you ready to test your knowledge about financial crises? This ten-question multiple-choice quiz will explore some fundamentals regarding financial crises, unemployment, and medical emergencies. After completing all ten questions, click "What's my grade?" at the end of the quiz to see how you did.

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What should you assess first when you are in debt and unemployed?
When dealing with debt and unemployment, it is best to organize your monthly expenses. Creating a list of your monthly expenses will allow you to see what expenses are necessary versus unnecessary. Cutting out any unnecessary expenses will help you manage your budget better.

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What should you do when you are newly unemployed?
When newly unemployed, the first thing you should do is contact your state's unemployment insurance to file for unemployment. Establishing your unemployment claim is essential if you are to collect unemployment insurance.

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What expenses are deemed essential for survival during a financial crisis?
Essential expenses include housing, food, utilities, household supplies, and insurance. Unnecessary expenses would include any subscription services and streaming services and can be cut to meet your budget.

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How should you handle large medical bills?
Medical emergencies can lead to unexpected debt. It is best to work with your doctor, hospital, or health insurance company to manage large medical bills. The simplest thing you can do is review your medical bill yourself or have a professional review it for any clerical errors. A large percentage of medical bills contain clerical errors, which can lead to overcharging. You can also negotiate the medical bill itself with your doctor or hospital or your health insurance company to get it lowered. Lastly, to manage the bill itself, you can set up a payment plan with billing to get monthly payments to fit into your budget.

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What percentage of medical bills contain clerical errors that lead to overcharges?
Many medical bills, usually between 50 to 80 percent, contain clerical errors that lead to overcharges. Most medical billing advocates claim that they find around 80 percent error, which is very high.

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What can you do to avoid unnecessary treatments and expenses for medical emergencies?
The cost of medical treatment depends on what care you get and where. If you have health insurance, it is possible to contact a nurse's hotline when you first notice non-emergency symptoms. Once you get that information, you can then decide on what your next step will be. Going to UrgentCare will also be more cost-effective than going to the emergency room for non-serious emergencies.

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What is the best way to avoid a home foreclosure?
Even if your home is worth less than you owe on your mortgage, the bank cannot initiate a foreclosure unless you fall behind on payments. Therefore, plan your finances carefully to budget for your monthly payments if you want to keep your home. This may mean cutting back on other things you've become accustomed to, like cable TV, eating out, or having a gym membership. A lender's preference would be for you to keep your home and continue making payments on it. Because of this, lenders are willing to work with you; especially if you are confident you can get back on track with your payments.

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If you become worried about losing your job, what are the best things to do in preparation?
Preparing your finances for rainy days, weeks, months, and years can make a world of difference when economic downturns occur by allowing you to weather the storm without losing your home or your security. To improve your chances of success, pare down your expenses and debt and limit your spending to only essential items.

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When you're emerging from a bankruptcy situation, which of the following should you NOT do?
While it is true that it is more difficult to obtain credit, especially immediately after a bankruptcy, it is not impossible. The bankruptcy's effect on your credit score diminishes somewhat as it becomes less recent, and then its effect will stop when the information gets removed from your report after the seven to ten year period. It is imperative that you rebuild your credit and credit score, just as you once did when you were first starting out.

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If your elderly parents require your financial assistance, which of these steps should you take?
It is important to remember that even if you aren’t currently concerned about the mental or physical health of your parents, it’s good to become familiar with their finances as they reach retirement age. The sooner you do so, the more receptive and comfortable they’ll be when it comes to including you in important financial decisions. It will also be far easier to step in and take control when that time comes.

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