For this part, youll briefly review the relatively new payment information required on all credit card statements. The Credit Card Accountability, Responsibility and Disclosure Act requires that your credit card statement includes the number of months it will take to pay off your balance if you make only the minimum payment each month (and incur NO additional charges!). It also requires disclosure of the amount you would need to pay monthly to pay off your balance in 3 years. This newly required information seems to have been having a positive impact on borrowers; average balances have dropped since 2010, when it first began to be included on statements.

Review the sample required payment section below and answer the questions that follow.

	Payment Information (as it would appear on page 1 of a credit card statement)
	New Balance		$1,798.14
	Minimum Payment Due		$53.00
	Payment Due Date		7/20/21
	Late Payment Warning: If we do not receive your minimum Payment by the date listed above, you may have to pay a $25 late fee and your APRs may be increased up to the Penalty APR of 28.99%.
	Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example:
	If you make no additional charges using this card and each month you pay	You will pay off the balance shown on this statement in about	And you will end up paying an estimated total of
	Only the minimum payment	10 years	$3,284
	$62	3 years	$2,232
	If you would like information about credit counseling services, call 1-800-XXX-XXX.

Question 1: Assume this is your credit card. How much more than the minimum would you need to pay each month to pay off the balance in 3 years? Are you surprised at this number?
Question 2: How much interest would you save if you paid the amount that would pay off the balance in 3 years, instead of making just the minimum payment? (Youll need to calculate this from numbers on the chart).
Question 3: Would you be motivated to pay the amount you stated in Question 1, based on your answer to Question 2? If so, how would you find a way to make that additional payment? If not, why not?
Question 4: If the credit limit on this card is $2,000, what other damage might you be doing to yourself by only making the minimum payment each month?