Budget Feasibility Study

So Many Bills, So Little Money: A Budget Study Student: Course: EN 205 Professor: Dr. Gadzinski INTRODUCTION PURPOSE         The purpose of this study is to determine which of my bills would be the most beneficial to pay off this summer. The bills studied are Discover Card, Visa, MasterCard, and a bank loan.

PROBLEM         The problem is the amount of debt I have acquired over three years of college. I do not make enough money during the school year to pay for the fees, interest, and monthly payments for these debts. I am paying large amounts of interest and could be putting that money toward things that are more useful. The reason for choosing this problem is to determine the best plan for reducing these debts and improving my financial situation.

SCOPE The options studied are as follows:         The Discover Card has a balance of $2987.86. It has a minimum payment of $50 per month. The interest rate is 19.7%

annually. It does not have a monthly fee.

        The Visa card has a balance of $2147.51. It has a minimum payment of $43 per month. The interest rate is 17.6% annually. It does not have an annual fee.

        The MasterCard has a balance of $1413.43. It has a minimum payment of $30 per month. The interest rate is 11.9% annually. It has an annual fee of $20.

        The bank loan has a balance of $1212.00. It has a minimum payment of $98 per month. The interest rate is 7%. There is no annual fee.

The criteria used to evaluate these options are as follows: 1. How much is the total balance? The balance of the bill or bills paid on needs to be small enough to be paid in full and cancelled by the end of summer. If the bill can not be paid in full, I will...