Liam’s car needs repairs, but he does not have an emergency…

Liam’s car needs repairs, but he does not have an emergency fund to cover the expenses. He decides that he needs his car repaired immediately and wants to finance the cost of the repairs. Liam can apply for a credit card and pay for the repairs using the credit card. If Liam cannot pay off the credit card when the payment is due, what will happen?

Duncan’s parents are concerned because he now has a credit c…

Duncan’s parents are concerned because he now has a credit card and has been using it to buy new clothes, go out to eat, and pay for his friends to enjoy other luxuries like massages and pedicures. His parents explain that he needs to pay off the credit balance at the end of each month to avoid paying extra interest on the interest from the purchases, which is called ________________.