PURPOSE: Students analyze the impact of making a monthly budget meet by making minimum payments on a credit card. Though this is an option some people use, this assignment shows students the hidden drawbacks of this practice.
Many people find they come up short on cash at the end of the month. To make ends meet, some choose to make a minimum payment on a credit card rather than paying off the entire bill. Since most credit cards only require us to pay off a small percentage of our balance, this may seem like a great option. However, only making the minimum payment can cause problems we may not even realize.
- Read the article at http://www.nerdwallet.com/blog/tips/credit-score/minimum-payment-credit-card/ (Links to an external site.), then read and complete the attached worksheet.