Question

Can I get some help please. Hailey is hosting a party at her new apartment. She uses her credit card to buy a big screen television to impress her friends at the party. She then makes the minimum payment on the credit card each month. Is this a financially responsible decision or a financially irresponsible decision? Explain the financial benefits or costs of this decision.

Answer 1

Irresponsible. The responsible thing to do would to be first and formost only using a credit card for small, quick purchases that you could pay back immediately as the bill arrives. Paying the minimum payment and dragging it out for weeks can and will deplete your credit score and will make you pay more in interest.