Credit Card Debt Explained with a Glass of Water

What is the average minimum payment typically made towards a $10,000 credit card debt?

• $142

• $150

• $160

• $130

How much does the debt decrease after one month of minimum payments and interest?

• $20

• $10

• $1

• $5

What is the impact of a 17% interest rate on the debt reduction progress?

• It fluctuates the debt amount

• It speeds up the debt reduction

• It has no impact

• It significantly slows down the debt reduction

What is the new debt amount after the first month of making a minimum payment?

• $10,000

• $9,900

• $9,950

• $9,999

After two months of payments, by how much has the total debt amount decreased?

• $15

• $10

• $2

• $20

How much total debt remains after one year of making minimum payments?

• $9,900

• $9,850

• $10,000

• $9,995

After one year of payments, by how much has the debt been reduced?

• $50

• $100

• $15

• $5

What could the money spent on credit card payments over 36 years have been used for instead?

• Investing in stocks

• Purchasing electronics

• Buying luxury items

• Vacations, mortgage, or retirement

What is the total amount paid over 36 years for a $10,000 debt at 17% interest with minimum payments?

• $40,000

• $70,000

• $50,000

• More than $60,000

How long does it take to pay off the debt making only minimum payments?

• 30 years

• 36 years

• 40 years

• 25 years