Question

From the statements below, identify the way or ways in which making only minimum monthly payments on

I. It is illegal to make only the minimum payments for more than one year.


II. Repeatedly making minimum payments harms your credit score.


III. The total cost is higher if the length of the debt is longer.



a.

I and II


b.

II only


c.

I and III


d.

II and III

Answer 1

✅ D. II and III

i choose d and got 100% on test ⬇️

Answer 2

Answer is D

Since you pay minimum only, then outstanding amount is higher and interest is higher. It takes longer to pay down and costs more.
Repeatedly making minimum payments only means you have less ability to pay down credit card.