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Using the Avalanche Method and the following debt, how much of the monthly $700 should be paid to Creditor #3?

Creditor #1: Balance = $9,000 / APR = 12% / Minimum Payment = $155

Creditor #2: Balance = $1,000 / APR = 18.99% / Minimum Payment = $25

Creditor #3: Balance = $500 / APR = 18% / Minimum Payment = $25

Respuesta :

Creditor 3 should receive only the minimum payment of $25. In the avalanche method, the debtor pays only the minimum payments, then pays the rest of their money to the creditor with the highest interest rate. Creditor 2 has the highest interest rate.