Paying off Debt
Michelle has four credit cards with the balances and interest rates listed below. If Michelle
wanted to pay off all four credit cards in 36 months, what would her total monthly credit card
payment be?
Credit Card
Balance
APR
#1
$4,380
17%
#2
$1,365
19%
#3
$2,480
23%
#4
$5,000
15%
c.
$475.67
Which method of debt reduction saves you the most money in interest
b.
paying off highest interest rate debt first
Michelle has four credit cards with the balances and interest rates listed below. Rather than
budget to pay each of the credit cards off in 36 months, Michelle would like to pay them off
one at a time based on the balance for each credit card. In which order should Michelle pay
off her credit cards?
Credit Card
Balance
APR
#1
$4,380
17%
#2
$1,365
, 19%
#3
$2,480
23%
#4
$5,000
15%
b.
4,1,3,2
Sarah has a credit card balance of $9,450 with an APR of 17%. With her current budgeted
payment, Sarah will be able to pay off this debt in 36 months. But Sarah's best friend just
invited her to spend two months in Europe with her in 9 months. Wanting to have her credit
card balance paid off before she goes to Europe, Sarah decides to take on a second job.
What additional monthly income will Sarah need in order to pay off her credit card in 9
months
c.
$788.85
We have an expert-written solution to this problem!
Which of the following is not something that should be considered when creating a debt
payment plan
a.
In general, the larger the debt, the longer you should plan to take to pay it off
Frank has four different credit cards, the balances and interest information of which are
outlined in the table below. As Frank was developing a debt payment plan, Rick suggested
that he pay off the credit cards beginning with the highest interest rate, working his way
down. If Frank chooses to follow Rick's advice, in what order should Frank plan on paying off
his credit cards?
Credit Card
Balance
APR
A
$2,380
19%
B
$4,500
15%
C
$1,580
17.50%
D
Michelle has four credit cards with the balances and interest rates listed below. If Michelle
wanted to pay off all four credit cards in 36 months, what would her total monthly credit card
payment be?
Credit Card
Balance
APR
#1
$4,380
17%
#2
$1,365
19%
#3
$2,480
23%
#4
$5,000
15%
c.
$475.67
Which method of debt reduction saves you the most money in interest
b.
paying off highest interest rate debt first
Michelle has four credit cards with the balances and interest rates listed below. Rather than
budget to pay each of the credit cards off in 36 months, Michelle would like to pay them off
one at a time based on the balance for each credit card. In which order should Michelle pay
off her credit cards?
Credit Card
Balance
APR
#1
$4,380
17%
#2
$1,365
, 19%
#3
$2,480
23%
#4
$5,000
15%
b.
4,1,3,2
Sarah has a credit card balance of $9,450 with an APR of 17%. With her current budgeted
payment, Sarah will be able to pay off this debt in 36 months. But Sarah's best friend just
invited her to spend two months in Europe with her in 9 months. Wanting to have her credit
card balance paid off before she goes to Europe, Sarah decides to take on a second job.
What additional monthly income will Sarah need in order to pay off her credit card in 9
months
c.
$788.85
We have an expert-written solution to this problem!
Which of the following is not something that should be considered when creating a debt
payment plan
a.
In general, the larger the debt, the longer you should plan to take to pay it off
Frank has four different credit cards, the balances and interest information of which are
outlined in the table below. As Frank was developing a debt payment plan, Rick suggested
that he pay off the credit cards beginning with the highest interest rate, working his way
down. If Frank chooses to follow Rick's advice, in what order should Frank plan on paying off
his credit cards?
Credit Card
Balance
APR
A
$2,380
19%
B
$4,500
15%
C
$1,580
17.50%
D
