FP101 Week 4 - Week Four DQ 1 Post a 150- to 300-word...

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Week Four DQ 1 Post a 150- to 300-word response to the following discussion question by clicking on Reply: Review Credit Cards, located at the following link: . http://wps.pearsoncustom.com/wps/media/objects/7558/7740063/Videos/0801.mov 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. If you pay just the minimum amount to pay off a $5,000 credit card you will not only be paying for almost 23 years but you are also going to be paying $6,923 just in interest equaling out to $10,923 dollars in total. If you may the Maximum fixed balance of $150 on a $5000 credit card you will only be paying for about 4 years and paying $1,983.60 in intrest equaling to $6,983.60 By the math alone it would benefit the creditor to pay the fixed payment a month instead of a minimum balance. It will save them $3939.40. So not only will it save you time to pay the $150 by 19 years but it will save you a lot too. Never pay just the minimum payment if you can help it. You will pay much more over time than you will if you pay more than the minimum. The more you pay each month, the less you'll spend. Better yet, charge only what you can pay off entirely at the end of each month, so you don't incur any interest at all. Week Four DQ 2 Post a 150- to 300-word response to the following discussion question by clicking on Reply: Review How to Establish, Use, and Protect Your Credit located under your Week Four Electronic Reserve Readings. List one way to establish your credit and one way to protect your credit. What are some things you can do to improve poor credit? Begin by opening individual savings and checking accounts in your name. Over time, your deposits, withdrawals, and transfers will demonstrate that you can handle money responsibly. Applying for a loan is another option, but be aware that this method of establishing a credit history will cost, since loans require the payment of interest. You
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FP101 Week 4 - Week Four DQ 1 Post a 150- to 300-word...

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