Understanding Credit Cards: Net Income, APR, and Payment Strategies

Explain the difference between net income and gross income. Why is it important to know the difference when managing personal finances?

What is APR on a credit card, and how does it differ from the monthly interest rate?

Describe a scenario where someone's credit card balance might increase even though they are making regular payments. What could be causing this to happen?

How can understanding APR and monthly interest rates help you make better financial decisions when using a credit card?

Reflect on the importance of making more than the minimum payment on a credit card balance. How does this affect the amount of interest paid over time?

Discuss why it might be misleading to only look at the monthly payment amount when evaluating the cost of a credit card balance. What other factors should be considered?

Calculate the interest accrued on a credit card with an APR of 18% and a balance of $500 over one month. How would this amount change if the APR was 24%?

If you have a net income of $3,000 per month and your credit card payment is $150, what percentage of your net income is going towards your credit card payment? Why is this percentage important to consider?

Consider a credit card with a balance that is increasing each month. What strategies could be employed to start decreasing the balance?

Reflect on the long-term impact of only paying the minimum payment on a credit card. How could this affect your financial goals?