Economics Homework Help

I’m working on a finance discussion question and need a sample draft to help me study.

Initial Post:

• Consider the following scenario:
  • 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.

Please be sure to validate your opinions and ideas with citations and references in APA format and in-text citations.

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Peer response (attached document):

• Consider your peer’s thoughts on what to remove or reduce to make the same monthly payment? In what ways does your response differ from theirs?
• Share with your peer why you feel the car loan they would have to repay might or might not be worth their proposed sacrifices.
• Suggest an additional option they could consider to avoid taking on that monthly car payment.