Question 1: You have the following debts:
a. Student loan balance of $17,000 at 5.25% interest, with payments of $225/month
b. Visa balance of $800 at 18% interest, with a mini-mum monthly payment of $32
c. Car loan balance of $5,500, with monthly pay-ments of $175
d. Department store credit card balance of $300 at 24% interest, with minimum monthly payments of $25
By paying all of your expenses and living on a very tight budget, you stopped all the little leaks and now have an extra $300 each month and $1,000 in your emergency fund. You now are at war with your debts. Structure a repayment plan, listing the order in which you will pay off your debts and when they will be paid off. Use a worksheet like the one below to calculate the balances month-to-month for two years.
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Debt
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Beginning Balance
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Current Balance
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Minimum Balance
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Current Payment Account
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Payment To Zero Balance
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Debt Of Payoff
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$
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$
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$
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$
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$
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$
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$
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