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Answered 2015-06-08 03:31:25

When a debtor owes a debt like a credit card charge, paying the amount on time every month:

  1. reduces the principal balance
  2. which over time also reduces the interest on what is left
  3. and gives the debtor an excellent credit rating (for that bill only)

It also gives "room" on the card for you to make another purchase.

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