Question

4. Why is it more difficult to get out of

debt when only paying the minimum
payment? (2pts)
Your entire minimum payment goes toward
principal and the interest continues to
compound.
The majority of your minimum payment is
going toward interest and finance charges
and only a small amount toward the
principal.
Your credit limit always resets, so you have
a lot of spending power each month.

Answer 1

The majority of your minimum payment is going toward interest and finance charges and only a small amount toward the principal.