Question

Which is an automatic consequence of only making the minimum payment on a credit card?

1) Increased interest charges.
2) Improved credit score.
3) Reduced total debt.
4) Decreased minimum payment in the future.

Answer 1

Making only the minimum payment on a credit card will result in increased interest charges.

Step-by-step explanation:

Making only the minimum payment on a credit card will result in increased interest charges. Every month you carry a balance on your credit card, you are charged interest on the amount you owe. So, by making only the minimum payment, you are not paying off the full balance and the remaining balance continues to accrue interest.