elizabeth just received her credit card bill. she calculates the compound interest on her bill and considers…

elizabeth just received her credit card bill. she calculates the compound interest on her bill and considers the payments she could make. if she pays the minimum payment of $45, it will take her five years to bring her balance to $0. how can elizabeth most responsibly pay off her bill sooner? continue paying the minimum monthly payment pay it off with a different credit card take out a personal loan from a bank pay more than the minimum payment each month

elizabeth just received her credit card bill. she calculates the compound interest on her bill and considers the payments she could make. if she pays the minimum payment of $45, it will take her five years to bring her balance to $0. how can elizabeth most responsibly pay off her bill sooner? continue paying the minimum monthly payment pay it off with a different credit card take out a personal loan from a bank pay more than the minimum payment each month

Answer

Brief Explanations:

Paying only the minimum monthly payment will prolong the debt - repayment period. Using another credit card to pay off the bill may lead to a cycle of debt. Taking out a personal loan can add more debt and interest costs. Paying more than the minimum payment each month reduces the principal faster, thus reducing the overall interest paid and allowing her to pay off the bill sooner.

Answer:

pay more than the minimum payment each month