Question

You have a balance of $15,300 on your credit card with an annual interest rate of 185(1.5% interest rate per month) You pay $200 this month. Did your balance go up or down?

Answer 1

Down

Normally, payment is first applied to interest before it is applied to the principal. Since your payment is larger than the interest, your remaining balance will go to the principal. As a result, your balance will go down.