In implementing a credit card payment program, assuming to stop using credit, your debt balance will decrease slowly at first and more quickly as time progresses.

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The statement addresses how a credit card debt balance tends to evolve over time when you stop adding new charges and continue paying down the balance. 
Option 1 (True): The idea that the balance decreases slowly at first and more quickly as time progresses aligns with how interest accrues on a revolving balance. Early on, a larger portion of each payment may go toward interest, especially if the balance is high, so the principal reduces gradually. As the principal decreases, the interest charged each period falls, and a larger share of each payment goes toward reducing the principal, causing the balance to shrink more rapidly in later periods. In short, the payoff pace accelerates after the initial period due to decreasing interest charges and a growing proportion of payment applied to principal. 
Option 2 (False): Saying the balance would decrease at a constant rate ignores the impact of interest on the outstanding balance over time. If you continue to be charged interest, the amount of interest paid each period changes as the balance changes, typically slowing the early payoff and speeding up later payoff (but not always equally). Additionally, if you alter payment behavior, such as paying less than the required amount or continuing to accumulate charges, the pattern could differ from the asserted “slow then fast” trajectory. Therefore, asserting a uniform or non-changing rate of decrease would be inaccurate in general. 
Option 3 (False): If someone keeps using credit or only makes very small payments, the balance may not decline at all in the short term or could even grow due to interest exceeding payments. This contradicts the described pattern of a slow-to-fast decrease once you stop using credit and make payments. 
Option 4 (False): The phrase implies a predictable acceleration solely from stopping new charges, but real-world outcomes depend on interest rate, balance size, payment amount, and timing. If any of these factors counteract the effect (for example, very high minimum payments that barely reduce principal), the balance trajectory may not exhibit the described slow-then-fast pattern. Nevertheless, the core financial principle under typical circumstances supports a faster decrease later as interest declines.

FSOS 1301 (001) Final Exam/Quiz

In implementing a credit card payment program, assuming to stop using credit, your debt balance will decrease slowly at first and more quickly as time progresses.

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