The tables show two ways to pay off $500 in credit card debt. Which is the best option for someone who wants to improve his or her credit and pay less interest on the debt? $15 a month because it will let the person keep more spending money $100 a month because it will free up credit to buy other things $15 a month because it will save money in the long run $100 a month because it will reduce the amount of debt owed
Social Studies · Middle School · Mon Jan 18 2021
Answered on
The best option for someone who wants to improve their credit and pay less interest on the debt is:
$100 a month because it will reduce the amount of debt owed.
Paying a higher amount each month, in this case, $100, helps to reduce the outstanding balance more quickly. This not only saves money on interest payments in the long run but also demonstrates responsible financial behavior to creditors, positively impacting the individual's credit score. Consistently paying more than the minimum amount due is generally considered a good practice for both debt reduction and credit score improvement.