Essay on Analysis of Credit Card Debt

1229 Words Jan 21st, 2014 5 Pages
Analysis of Credit Card Debt
Jeanette Macintyre
Argosy University
MAT 108

Analysis of Credit Card Debt
Credit card debt is a reality for many in today’s world. Suppose that you had a \$5,270.00 balance on a credit card with an annual percentage rate (APR) of 15.53 percent. Consider the following questions and prepare a report based upon your conclusions.
1. Most credit cards require that you pay a minimum monthly payment of two percent of the balance. Based upon a balance of \$5,270.00, what would be the minimum monthly payment (assuming no other fees are being applied)? \$105.40
\$5270* .02= \$105.40
2. Considering the minimum payment you just calculated, determine the amount of interest and the amount that was
…show more content…
If you make a second payment or a minimum of \$50 whichever is higher and apply it to principal you will pay down your debt in roughly half the time of paying just the minimum. This is an easy way to keep your balance under control and pay bills on time. It may also help to boost your credit rating in the future.
By paying more