Income
Salary 3,500
Tax withholding (490)
401(k) 0
Health insurance (210)
Net salary 2,800
Total net income $2,800.00
Expenses
Rent (900)
Utilities (325)
Internet (62)
Credit card payments (200)
Food (625)
Clothes (200)
Transportation (200)
Entertainment (400)
Total expenses $2,912.00
Difference ($112.00)
How can James free up more money to pay down his credit card debt?
(1 point)
Responses
He has to pay less in rent each month.
He has to pay less in rent each month.
He has to start contributing to his 401(k).
He has to start contributing to his 401(k).
He has to cut back on other expenses.
He has to cut back on other expenses.
He has to complete an income statements every month.
1 answer
To free up more money to pay down his credit card debt, the most effective option for James would be:
He has to cut back on other expenses.
This approach allows him to identify areas where he can reduce spending without having to make significant changes to fixed costs like rent or starting contributions to his 401(k).
