Let's break down the statements one by one:
1. If my balance is [tex]$1000.00 and I pay $[/tex]999.00, I will not be charged any interest.
This statement is False. Credit card companies typically charge interest on the remaining balance. In this case, if you have a balance of [tex]$1,000 and you pay $[/tex]999, you will still have an outstanding balance of [tex]$1. Generally, credit card companies will charge interest on this remaining balance if it is not paid off entirely. Therefore, interest will be charged on the $[/tex]1 that remains unpaid. Additionally, some credit card terms might charge interest on the average daily balance, which can include portions of the balance that were paid off during the billing cycle.
2. Making the minimum payment on a credit card is a quick way to pay off your balance.
This statement is False. Making only the minimum payment on your credit card balance is usually not a quick way to pay off the balance. Minimum payments usually cover just a small portion of the principal amount owed, with the rest covering the interest. As a result, it can take a significant amount of time to pay off the full balance if you only make the minimum payments each month. Additionally, the longer it takes to pay off the balance, the more interest you will accrue over time. Thus, to pay off your balance quicker, it is advisable to pay more than the minimum payment whenever possible.
