Question

Use the table below summarizing the credit card debt Max currently holds to answer the question that follows.


Credit Card Balance APR Minimum Payment Total Interest Paid Number of Months to Pay Off
US Speedy Card $3,452 21.4% $138.08 $2,516 131
Furniture Warehouse Card $3,046 20.6% $121.84 $2,022 122
Home Décor Card $3,526 17.5% $141.04 $1,819 117
Dress Yourself Card $3,985 19.8% $159.40 $2,693 133


Which credit card should receive the highest payment if Max snowballs his debt according to the balance?

Answer 1

what does it mean to snowball a debt?

Answer 2

I have no clue

Answer 3

I keep getting the question wrong every time I do it, maybe it doesn't mean anything special?

Answer 4

http://www.davemanuel.com/investor-dictionary/debt-snowball/

Answer 5

Stopppp I don't speak Spanish

Answer 6

okay, sorry :\

Answer 7

according to that definition .... the definition associated with your own material may differ ... the smallest debt gets a little more money

Answer 8

I'm still confused, but I understand that definition :/

Answer 9

the smallest debt is paid off first; by adding an extra "M" amount to it

Answer 10

$3,452 21.4% $138.08 $2,516 131
$3,046 20.6% $121.84 $2,022 122 <-- smallest balance gets +M added
$3,526 17.5% $141.04 $1,819 117
$3,985

Answer 11

Oh alright, so that answer would be Furniture Warehouse Card

Answer 12

without knowing what amount M is added, then there is no way of knowing which one is actually the highest payment .... M would have to be greater then the difference of the bigest and smallest payments

Answer 13

my guess would be the furniture place .. but i cant be certain without knowing how your material defines a snowball ....

Answer 14

Ok thank you :)