Paying Off Debt

balance transfer

debt

minimum payment

Jerry has a credit card debt of $15,600 that he would like to reduce by applying $8,500 of his inheritance money to the balance. In addition, he would like to modify his debt payment plan to pay off the remaining balance in 24 months rather than 60 months. His credit card has an APR of 18%. How much will these changes save Jerry in finance charges (interest)?

In general, reducing the present value (PV) of a credit card while keeping the number of periods (n) and interest rate (i) the same will _____.

Which answer choice best describes the debt snowball method?

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?

Cynthia had a credit card with a 17% APR and a $3,265 balance. She had budgeted to have the credit card paid off in 24 months. But after missing a single monthly payment, Cynthia's credit card company has increased her interest rate to 21%. How much extra will Cynthia have to pay in finance charges (interest) because of the increase in her APR if she still pays off the credit card in 24 months?

Which method of debt reduction saves you the most money in interest?

Which of the following is not something that will help you pay off credit card debt?

Frank has four different credit cards, the balances and interest information of which are outlined in the table below. He would like to consolidate his credit cards to a single credit card with an APR of 18% and pay off the balance in 24 months. What will his monthly credit card payment be?

Alex wants to pay off his credit card balance before he gets married. He decides to take the $2,300 out of his savings and apply it to his credit card debt of $5,390. The credit card has an APR of 16.5%. What will Alex's minimum monthly credit card payment be in order to pay off his debt in 14 months?

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?