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How Paying The Wrong Bills Costs You Money

Wednesday, August 3, 2011 - 9:41 AM
From DailyFinance
Imagine you're sitting on a park bench one breezy afternoon, minding your own business, when out of nowhere a $100 bill lands in your lap, like a leaf falling off a tree. There's no way to find out who lost the money, so this little treasure is now yours. The only caveat is that you have to use all $100 to pay down some of your debt.

Now imagine you have two credit-card accounts. One has a $100 outstanding balance and a 10% interest rate. The other charges a 15% interest rate on your $1,000 balance. How much do you repay on each account?

This isn't a trick question. If your goal is to get the most bang for your buck, there is a right answer....

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WhataBummerWhataBummer413 posts since
Oct 15, 2010
Rep Points: 1,702
1. Wednesday, August 3, 2011 - 10:40 AM
As usual, too many people lack basic skills in math - one of the things that'll be America's downfall.
darkdreamer4udarkdreamer4u177 posts since
Jun 11, 2010
Rep Points: 637