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barrelracer23

  • 2 years ago

Can someone help me with this problem please?!!!!! You have four credit cards. Each has a balance of $450.00, but their credit limits are $800.00, $1,200.00, $1,300.00, and $1,500.00. Paying off and closing which card would decrease your debt ratio? (1 point)

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  1. barrelracer23
    • 2 years ago
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    @amistre64 can you help me with this problem please? I dont want the answer, just need help with it.

  2. amistre64
    • 2 years ago
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    what defines a debt ratio? if memory serves it is balance/debt but i might have that upside down

  3. amistre64
    • 2 years ago
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    debt/limit

  4. amistre64
    • 2 years ago
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    is a rule of thumb, the bigger the bottom number, the lower the value; so you want the card with the smallest balance to get the biggest debt ratio owed

  5. barrelracer23
    • 2 years ago
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    yeah its debt/limit

  6. barrelracer23
    • 2 years ago
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    So would I want to pay off the card with the largest amount first?

  7. amistre64
    • 2 years ago
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    "Paying off and closing which card would decrease your debt ratio?" Paying off any of them would decrease your debt ratio. Paying off which one would decrease it the most? the card with the highest debt ratio of course

  8. barrelracer23
    • 2 years ago
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    Ahhhh... I see, if I just pay it off and dont close it ill still have the same debt ratio right?

  9. amistre64
    • 2 years ago
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    sounds good to me :)

  10. barrelracer23
    • 2 years ago
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    Thank you!!:)

  11. amistre64
    • 2 years ago
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    yep, good luck ;)

  12. barrelracer23
    • 2 years ago
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    it was the smallest

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