\begin{tabular}{l} The tables show two ways to pay off \( \$ 500 \) in credit card \\ debt. \\ \( \qquad \begin{array}{l}\text { Credit card debt: } \$ 500 \\ \text { Annual compound interest: } 15 \% \\ \text { improve his or her credit and pay less interest on the } \\ \text { debt? }\end{array} \) \\ \( \begin{array}{l}\text { Payment made per month: } \$ 15 \\ \text { Total paid ( } 44 \text { months): } \$ 550.85\end{array} \) \\ \( \begin{array}{l}\text { Payment made per month: } \$ 100 \\ \text { Total paid ( } 6 \text { months): } \$ 519.63 \\ \text { spending money } \\ \$ 100 \text { a month because it will free up credit to buy } \\ \text { other things } \\ \$ 15 \text { a month because it will save money in the long } \\ \text { run }\end{array} \) \\ \hline 100 a month because it will reduce the amount of \\ interest paid \end{tabular}

Getting a grip on credit card debt can feel like climbing a steep mountain, but knowing the historical context can help put things into perspective. Credit cards were introduced in the mid-20th century, transforming how consumers accessed credit and leading to both spending sprees and financial headaches. As credit cards gained popularity, the alarming rates of debt also began soaring, prompting the need for better management strategies—a journey still ongoing today! When it comes to practical steps for paying off credit card debt, adopting the "avalanche" or "snowball" method can be key. The avalanche method focuses on paying off debts with the highest interest rates first, saving you money over time. Conversely, the snowball method suggests tackling the smallest debts first to build quick momentum. A common mistake, however, is not factoring in monthly interest accrual—it can sneak up on you! Always keep an eye on your statements and make adjustments to your payment strategy as needed!