Respuesta :
Answer:
The correct answer is "pay less interest in the long run".
Explanation:
Regarding payment of credit cards debt, most of the credit cards have an option to make a minimum payment which is typically a fixed amount. Paying only the minimum is a tempting option, however, it results in paying more in finance charges. Paying more than the minimum payment is better, because it results in pay less interest in the long run.
The correct option is (a) pay less interest in the long run.
Further explanation:
When an individual makes the minimum payment on his credit card then he gives himself temporary relief. It’s when an individual commit to pay more in interest charges. The trade-off might get an individual into serious trouble related to money over time, it happens especially when an individual’s card charges a high rate of interest.
If a person pays the minimum towards his balance each month, then he can expect the following things to happen:
- Paying down one’s debt takes a much longer time.
- An individual will gain bigger interest charges.
- An individual credit score can take a hit.
When an individual starts using a credit card, the minimum payment is one of the important and first things an individual should understand. When an individual pays more than the minimum payment, a person’s credit card balance goes down.
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Answer details:
Grade: Middle School
Subject: Social studies
Topic: Credit Card Minimum Payment
Keywords: interest, minimum payment, trade-off, debt, credit card, rate of interest, money
