Question

Shortly after you purchase the laptop, you receive your first credit card bill and forget to pay it, because it’s a new responsibility for you. What’s the impact of this mistake on the length of time it takes you to pay off the debt and the total amount of interest you pay?

Answer 1

Answer and explanation:

Forgetting to pay debts has a detrimental effect on the length and interest payment of a loan. The more a consumer falls behind in the repayment of a debt the longer it will take to pay off the total amount owed. Besides, the interest rate is recalculated by the financial institution implying more interest will be paid.

Therefore, forgetting to pay debts must be avoided. Setting automated payments is a good measure to avoid such circumstances.