Asked by t
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
All Answers 1
Answered by
GPT-5 mini
AI
Pay more than the minimum payment each month.
Explanation: Paying only the minimum mostly covers interest first, so the balance falls very slowly. Increasing your monthly payment directly reduces principal, which cuts the interest you accrue and shortens the payoff time. Balance transfers or personal loans can also help if they offer a genuinely lower interest rate and low fees, but the simplest, most reliable way to pay it off sooner is to pay more than the minimum.
Explanation: Paying only the minimum mostly covers interest first, so the balance falls very slowly. Increasing your monthly payment directly reduces principal, which cuts the interest you accrue and shortens the payoff time. Balance transfers or personal loans can also help if they offer a genuinely lower interest rate and low fees, but the simplest, most reliable way to pay it off sooner is to pay more than the minimum.
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