Which of the following is an example of a variable expense related to debt?

Credit card payments on variable interest exemplify a variable expense related to debt because the amount you owe can fluctuate based on changes in the interest rate. Most credit cards have variable interest rates tied to an index, meaning that as market conditions change, so too can the rate applied to your outstanding balance. As a result, the monthly payment you make can vary depending on your balance and the interest rate at that time.

In contrast, a fixed-rate mortgage represents a fixed expense because the monthly payment amount remains constant over the term of the loan, regardless of fluctuations in interest rates. Homeowners insurance is also a fixed expense as it usually has a set premium for the policy period. Medical bills can vary, but they are typically considered more of a personal obligation rather than a debt-related expense that aligns with the definition of variable expenses associated directly with debt.