credit history, financial responsibility
TEKS 8(1)(A), 8(12)(F)
When you use a credit card, you must pay your bill on time in order to avoid extra costs. If you do not make the minimum payment on your credit card bill by the due date, the credit card company charges a late fee. The company may also raise your interest rate.
Example Calculating Costs of Missing a Credit Card Payment
The Inspector has a credit card balance of $280, which he intends to pay off in two months. The first month, he forgets to make the minimum payment of $20. He pays off the entire balance at the end of the second month. What is the cost of the inspector's financial irresponsibility?