After a review of your friend's current financial situation you discover she is carrying a $4500 credit card balance with an APR of 22%.What is the best advice you can give to your friend?
A)to eliminate using her credit card for nonessential purchases
B)to switch credit card companies, since many companies offer benefits like frequent flyer miles
C)to keep using the card and not to worry about the balance, since all interest is tax deductible
D)to place a high priority on eliminating her credit card balance

Question

Quizplus · Accepted Answer

Carrying a credit card balance with a high APR can result in a significant amount of interest accruing over time, making it difficult to pay off the balance. The best advice would be for your friend to prioritize paying off the credit card balance as soon as possible to avoid paying more in interest charges. This may involve making changes to her budget and cutting back on nonessential purchases to free up funds for debt repayment. Switching credit card companies or continuing to use the card without making changes to payment habits will not address the root issue of the high balance and interest charges. Additionally, interest on credit card debt is not tax deductible for individuals.

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