Which of these credit card payback strategies would result in your paying the HIGHEST amount of interest?

A. Paying 20% of your credit card balance every month on time
B. Paying off your credit card in full every month
C. Making the minimum payment (3% credit card balance) every month on time
D. Making the minimum payment (3% credit card balance) every month with an occasional late payment

Credit card debts attract a very high-interest rate. By design, the interest on uncleared balances increases rapidly. Credit cards calculate interest monthly. Any uncleared balance and the interest incurred is rolled over to the next month, where it continues attracting more interest.

The best strategy is to clear credit card debts in the month they are incurred. Late payment attracts heavy penalties. A combination of late payments and outstanding balances will make interest charges grow exponentially.

jayilych4real jayilych4real · Answer 2 · 2021-10-26T14:44:40+02:00

The credit card payback strategies that would result in your paying the HIGHEST amount of interest is:

D. Making the minimum payment (3% credit card balance) every month with an occasional late payment

Credit card debt has to do with the overdraft which a customer has collected from the company and is yet to make repayment. As a result of this, when it becomes overdue, there would be certain extra charges which would definitely hurt the customer.

As a result of this, we can see the method that would result in the highest interest rate is the fourth option.

In this method, there would be a 3% overcharge every month.

Therefore, the correct answer is option D