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) eliminate using her credit card for non-essential purchases
B) switch credit card companies, since many companies offer benefits like frequent flyer 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

Quizplus · Accepted Answer

Carrying a balance on a credit card with a high APR can result in paying a significant amount of interest over time. It's best to prioritize paying off the balance as soon as possible to avoid accruing additional interest and fees. Switching credit card companies or using the card for non-essential purchases will not address the existing balance issue. Additionally, credit card interest is generally not tax deductible for most individual taxpayers.

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