Final answer:
To avoid late fees and credit score damage when unable to pay the credit card bill in full, making the minimum payment is the best option. Paying a partial amount above the minimum can decrease the balance faster. Contacting the bank for an extension is also a possible solution.
Step-by-step explanation:
If this month you find yourself unable to pay the total balance of your credit card bill, your best option would be a) Make the minimum payment. This ensures that you avoid late payment fees and reduces potential damage to your credit score. Making only the minimum payment does not greatly reduce your principal balance, since a portion of it is directed towards interest, but it keeps your account in good standing. If possible, paying a partial amount above the minimum can be beneficial as it reduces the principal balance and hence the interest accumulation more quickly.
Option d) Contact the bank for an extension might also be a reasonable choice, depending on your situation and the bank's policies. Requesting an extension or discussing payment plans could prevent penalties and show that you are taking responsible steps to manage your debt.
Skipping the payment (Option b) can lead to late fees as well as increased interest rates, and it can hurt your credit score. The credit card company typically charges a late fee of $10 when a payment is late, and $5 a day each day the payment remains unpaid, making this option the least desirable.