How does decreasing your credit card balance affect your income statement?(1 point)

Responses

It increases your monthly expenses, increasing the amount you spend each month.
It increases your monthly expenses, increasing the amount you spend each month.

It increases your monthly expenses, giving you more money to spend on other things.
It increases your monthly expenses, giving you more money to spend on other things.

It decreases your monthly expenses, increasing the amount you spend each month.
It decreases your monthly expenses, increasing the amount you spend each month.

It decreases your monthly expenses, giving you more money to spend on other things.
It decreases your monthly expenses, giving you more money to spend on other things.

1 answer

The correct response is:

It decreases your monthly expenses, giving you more money to spend on other things.

Decreasing your credit card balance reduces the amount of interest you might owe, which can lower your monthly expenses. As a result, you have more disposable income to allocate to other spending or saving options.