After reviewing Brenda's current financial situation, Ronald, her friend, assesses that she has an unpaid credit card balance of $4,500, on which an annual percentage rate of 15% is applicable. In this case, the best advice Ronald can give Brenda is to:
A)increase the annual percentage rate on her credit cards.
B)switch credit card companies as many companies offer benefits such as frequent-flier miles.
C)keep using the card and not to worry about the balance because all interest is tax deductible.
D)place a high priority on eliminating her credit card balance as quickly as possible.

Question

Quizplus · Accepted Answer

The best advice Ronald can give Brenda is to prioritize paying off her credit card balance as quickly as possible. This is because credit cards generally have high-interest rates, and carrying a balance for an extended period can result in significant interest charges. By paying off the balance as soon as possible, Brenda can avoid paying unnecessary interest charges and improve her financial situation in the long term. Increasing the annual percentage rate, switching credit card companies, or ignoring the balance are not effective solutions to the problem of unpaid credit card debt.

After Reviewing Brenda's Current Financial Situation, Ronald, Her Friend, Assesses