After a review of your friend's current financial situation, you discovered she was carrying a $4,500 credit card balance with an APR of 12%. The best advice you can give to your friend is to:
A) eliminate using her debit card for nonessential purchases.
B) switch credit card companies, since many companies offer benefits like frequentflier miles.
C) keep using the card and not to worry about the balance, since all interest is tax deductible.
D) place a high priority on eliminating her credit card balance.

Question

After a review of your friend's current financial situation, you discovered she was carrying a $4,500 credit card balance with an APR of 12%. The best advice you can give to your friend is to:
A) eliminate using her debit card for nonessential purchases.
B) switch credit card companies, since many companies offer benefits like frequent­flier miles.
C) keep using the card and not to worry about the balance, since all interest is tax deductible.
D) place a high priority on eliminating her credit card balance.

Quizplus · Accepted Answer

Carrying a balance on a credit card with a high APR can lead to a lot of unnecessary interest charges. Therefore, the best advice would be to prioritize paying off the credit card balance as soon as possible.

After a Review of Your Friend's Current Financial Situation, You