Question

Gina wants to pay off her credit card balances within 24 months. She is trying to decide if she should use her $2,000 in savings to pay off part of the balances or if she should transfer the balances to a new card with a low introductory rate. The new credit card has an introductory rate of 9% but charges a balance transfer fee of $75 for each balance transfer. Evaluate Gina's options and recommend the debt management plan that results in the lowest monthly payment.Credit Card A: $1,354

Credit Card B: $1,678
a.
Pay off Credit Card B using the savings. Transfer the balance of Credit Card A to the new card.
b.
Pay off Credit Card A using the savings. Transfer the balance of Credit Card B to the new card.
c.
Pay off $1,000 from both Credit Card A and Credit Card B. Transfer the remaining balances from both cards to the new card.
d.
Pay off all of Credit Card B and $322 of Credit Card A. Transfer the remaining balance of Credit Card A to the new card.

Answer 1

To find the lowest monthly payment to pay off credit card balances, evaluate four different options and compare their monthly payments.

Step-by-step explanation:

To determine Gina's lowest monthly payment option, we need to evaluate each scenario:

1. Option a: Pay off Credit Card B using the savings. Transfer the balance of Credit Card A to the new card.
2. Option b: Pay off Credit Card A using the savings. Transfer the balance of Credit Card B to the new card.
3. Option c: Pay off $1,000 from both Credit Card A and Credit Card B. Transfer the remaining balances from both cards to the new card.
4. Option d: Pay off all of Credit Card B and $322 of Credit Card A. Transfer the remaining balance of Credit Card A to the new card.

To find the lowest monthly payment, we can calculate the monthly payments for each option and compare them. Calculate the monthly payment for each option using the respective interest rates, balance transfer fees, and remaining balances. The option with the lowest monthly payment is the recommended debt management plan for Gina.

Answer 2

answer i d

Step-by-step explanation: