1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Reil [10]
2 years ago
11

Why is it more difficult to get out of debt when only paying the minimum payment?

Business
1 answer:
Artyom0805 [142]2 years ago
7 0

When one keeps paying only the minimum amount, they will find getting out of debt harder because:

  • More interest will accrue on the balance left

When a person pays the minimum balance that they are supposed to pay on a loan, they will be leaving a larger portion of money to be paid back.

This amount will accumulate interest such that the debt will keep increasing because the interest needs to be paid back as well.

In order to get out of debt faster, it is recommended that you pay higher than the minimum because this would reduce the amount that interest is charged on which means that you would owe less interest.

In conclusion, paying the minimum balance leads to more interest accumulating which makes getting out of debt difficult.

<em>Find out more at brainly.com/question/13711677.</em>

You might be interested in
"A bond that was originally sold at par is now trading in the market at a premium. The bond is called at par. This action will b
AleksandrR [38]

Answer:  a. Issuer

Explanation:

When bonds trade at a premium, it means that the yield has fallen below the coupon rate which means that interest rates have dropped. Companies can take advantage of this to reissue new bonds at the lower interest rate so that they can save on costs.

Bonds usually have a call provision which would enable the issuer to call the bond in and pay the holder at the par value plus interest repayments at the lower yield which they will do in this case. They will then reissue new bonds at a lower rate.

3 0
3 years ago
Which stage of group development involves members introducing themselves to each other?
Rudik [331]

Answer:

It is the first stage

6 0
3 years ago
When employees at all occupational levels are asked to rank what is important to them, the order that put them in is: sufficient
bazaltina [42]

Explanation:

I don't understand the question. Maybe elaborate more.

6 0
3 years ago
Amazon expanded its single-product business by leveraging spare capacity into cloud computing and by offering its Kindle line of
RoseWind [281]

Answer:

B) related-linked diversification.

Explanation:

A related linked diversification strategy refers to expanding a company's product lines with products or services that are similar to the ones that it currently offers.

In this case, Amazon first sold books and selling a e-book reader follows a similar path. Since Amazon had spare cloud computing capacity, it decided to "lease it" to other businesses and is currently Amazon's star service that generates most of its cash.

6 0
4 years ago
What is the difference between a commercial bank and a savings bank
Andreas93 [3]
The primary difference is the way each is regulated, which determines the type of banking products they offer. ... Both commercial banks and S&Ls also make loans to businesses and government agencies.
3 0
3 years ago
Read 2 more answers
Other questions:
  • If you are required to show proof of financial responsibility for the future, for how many years must the proof be kept?
    14·1 answer
  • You are depositing $4,500 today at an annual interest rate of 7.2 percent. How much additional interest will you earn if you lea
    11·1 answer
  • Crystal Charm Company makes handcrafted silver charms that attach to jewelry such as a necklace or bracelet. Each charm is adorn
    14·1 answer
  • Of the people described below, who would be counted as unemployed? Choose one or more: A. a 55-year-old steel worker who was lai
    15·1 answer
  • Joey’s parents told him that for every 3 hours of chores he completes, they would give him $11 for his allowance. His friend Sar
    11·1 answer
  • You buy a house for $299,000.
    5·1 answer
  • Marigold Corp. sold goods with a total selling price of $809,700 during the year. It purchased goods for $390,100 and had beginn
    12·1 answer
  • On December 1, Watson Enterprises signed a $24,000, 60-day, 4% note payable as replacement of an account payable with Erikson Co
    13·1 answer
  • What activities can Future Educators Association members participate in? Select two options. Sporting events political rallies c
    5·1 answer
  • Identify the statement in the passage that reflects unethical behavior.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!