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WHAT IS THE COST OF credit card DEBT?Directions: Use the link below to answer the questions. I. According to NerdWallet, the average household carries $15,654 in credit card debt in 2017. Using the Bankrate calculator website to answer the following questions. Assume 18% interest rate and "interest+1% payment" of balance for minimum payment calculation:1. What is the minimum payment?2. How long will it take the family to pay it off in months? Years?3. How much interest will the family pay for the $15,654 credit balance?4. How much will the debt cost before paying it off (principal + interest)?5. What happens if you select a fixed payment plan of $500 instead of paying the minimum amount? Part II. According to NerdWallet, the average household carries $46,597 in student loan debt in 2017. Use the Bankrate calculator website to answer the following questions. Assume 4% interest and "interest +1% payment" of balance for minimum payment calculation:1. What is the minimum payment?2. How long will it take the family to pay it off in months? Years?3. How much interest will the family pay for the loan?4. What is the total cost of the loan (principal + interest)?5. What happens if you select a fixed payment plan of $1,000?Part III. Why should you always work towards paying down/paying off your debt before engaging in other discretionary spending? ................
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