What is your debt ratio? If you budget $375 to payoff your credit card debt and you payoff the highest interest card first while maintaining the interest accrued on the other card, how many months does it take you to pay it off and how much is the payment each time excluding the last payment?

Card : Murk (5.6% APR) Balance:$675.49 Limit:$1500.00

Card Mini (9.85%) Balance:$902.43 Limit:$1000.00

Question

Mathematics

Tara Coffey

7 August, 08:06

What is your debt ratio? If you budget $375 to payoff your credit card debt and you payoff the highest interest card first while maintaining the interest accrued on the other card, how many months does it take you to pay it off and how much is the payment each time excluding the last payment?

Card : Murk (5.6% APR) Balance:$675.49 Limit:$1500.00

Card Mini (9.85%) Balance:$902.43 Limit:$1000.00

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Answers (1)

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Dean Thompson · Answer 1

The debt ratio on the Murk is 45%

The debt ratio on the Mini is 90%

The average between the two is 63%

Payoff are estimates only. Paying $375/mo with the highest interest rate first will have the Mini @ $50/mo paid off by Jul 2016 and the Murk @ $326/mo paid off by Sep 2016. What you'll do is pay the minimum on the lowest interest rate card and apply the remainder of the $375 budget to the highest interest rate card. When the Mini is paid off, combine that payment with the Murk and continue wit the $375 payments.