Question

In two to three sentences, describe how making minimum payments on credit card balances increases the total cost.

Answer 1

While the minimum payment is the easiest payment, it’s also the slowest way to pay off your credit card balance. If you only make the minimum payment on your credit card, it could take years to pay off the balance. Not even that, you could end up spending hundreds, possibly even thousands, in interest by the time the balance is repaid.