Question

Bridget has an outstanding balance on four different credit cards. Which method of paying off her credit card debt will save her the most money?

paying the minimum balance each month

making fixed payments

snowballing her payments according to the highest interest rate

snowballing her payments according to the lowest balance

Answer 1

snowballing her payments according to the highest interest rate or making fixed payments I'm not sure between those two

Answer 2

The correct answer is "snowballing her payments according to the lowest balance".

Step-by-step explanation:

The snowball method that prioritizes paying off the lowest debt first, regardless of the interest rate.

Debts must be ranked from lowest to highest and the minimum balance on each must be paid, except on the card with the lowest debt. For the lowest debt, you must pay as much money as possible each month until the total amount of debt is completed. Then you must move on to the second smallest debt and pay it off in that order.

Have a nice day!