• You spend an extra $50 a month using a credit card for the first year after graduation to make ends meet.
• The interest rate charged by the credit card company is 18%.
• The minimum payment you are required to send each month is $20.
• Now consider the real cost of that $50 dollars a month by the end of that first year provided to you in the exercise.
  • How might the continued use of a credit card to fund an extra $50 of spending per month affect your long-term financial health?
  • Describe two ways you could avoid the long-term consequences of spending more than you have on a regular basis.