Question

Question 6(Multiple Choice Worth 4 points)
(01.08 LC)
Which of the following is a benefit to the consumer who pays the minimum required payments on a credit card?
O Avoid paying late fees
O Pay off the balance quicker
O Save on taxes owed on the debt
O Eliminate compounding interest

Answer 1

Answer:

B. Pay off the balance quicker.

Explanation:

Learn more here:

https://www.forbes.com/advisor/credit-cards/credit-card-minimum-payments/

Check this to make this answer is correct.

Hope this helps!

Answer 2

The correct option is A. Avoid paying late fees is a benefit to the consumer who pays the minimum required payments on a credit card. Reduces the chance of incurring a late payment fee. improved financial management, especially during times of financial difficulty. prevents the credit card companies from flagging your account as unusual while keeping it active.

How is a minimum payment determined?

Your monthly minimum credit card payment is determined by your interest rate and outstanding balance, and it may vary from month to month depending on how your balance shifts. A minimum payment is effectively the smallest sum that the bank will take each month in the settlement of your balance.

Even if it can seem insignificant, it's beneficial for you to at least pay the required minimum. By doing this, you can avoid incurring late fees and having a missing payment reported to the credit reporting agencies by your lender.

Learn more about Minimum Payment here:

https://brainly.com/question/3347812

#SPJ2