Managing Credit Cards Wisely
One of the primary challenges that we face in the realm of personal finance is properly using credit cards and managing debt that is associated with their use. Although the use of credit cards can be beneficial because it can extend your purchasing power and provide opportunities to acquire things sooner, without saving money first, there are hazards associated with their use.
For this Individual Project, please use the provided template to answer the following:
- Share your personal strategies and experiences when it comes to using credit cards responsibly. How do you ensure that you don't accumulate debt beyond your means?
- Credit cards can offer various benefits like rewards and convenience, but they also pose risks. What are some common mistakes people make when managing credit cards, and how can these pitfalls be avoided?
- How can we establish a plan to pay off credit card debt more rapidly than if we simply make the minimum payment and, what is the benefit of this approach?
- Please calculate the following and insert a screen shot of the calculation as part of your final submission?
Mark has a credit card with a $5,000 balance. His interest rate is 19%, and the credit card company requires a minimum monthly payment of $100 per month.
This interest a will show how much total interest Mark will pay