48774398-Week-4-DQs (1) - Discussion Questions Go to...

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Discussion Questions Go to http://www.bankrate.com/calculators/managing-debt/minimum-payment-calculator.aspx . Type in $5,000 for “What is your credit card balance?” Type in $150 for “What fixed payment could you make each month?” Do you think it is better to pay only the minimum payment or pay the higher monthly amount? Explain why. I think it is better to pay the higher monthly amount rather than the minimum payment. The reason I say this is pretty much clear according to the calculator. If you stick to paying $150 a month rather than going with the minimum payment on a balance of $5000, you will have paid off the card 226 months earlier. You would have also paid $4939.54 less in interest by paying a stead amount versus the minimum payment. With that being said, everyone loves spending less money to pay back a balance on a loan or credit card, whichever it may be at the time. So, the logical thing to do would be to pay back the money as quick as possible to you do not pay as much interest as you would with the minimum. The only idea I can think of that someone would not pay back the money as quick as
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