ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Credit cards are one of the priciest ways to borrow At the end of 2022, total credit card debt hit a record $930.6 billion, a 18.5% spike from a year earlier, according to the latest report by TransUnion. The average balance rose to $5, 805 over that same period, TransUnion found.
Detailed explanation-2: -When you use a credit card to make a purchase, you are borrowing funds to pay the merchant. For each purchase, your credit card issuer will advance funds to pay the merchant for your purchase, and then will charge your credit card account for the amount of that purchase.
Detailed explanation-3: -While there are exceptions, credit cards are usually best for people who need to borrow money in the short-term and pay it back within a few months. However, 0% balance transfer credit cards can be good longer-term options since they let you avoid interest for up to 21 months.
Detailed explanation-4: -Debt is anything owed by one party to another. Examples of debt include amounts owed on credit cards, car loans, and mortgages.