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 complete an income statements every month.
He has to complete an income statements every month.
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.
1 answer
To free up more money to pay down his credit card debt, the best option for James is:
He has to cut back on other expenses.
This choice directly addresses his current budget shortfall and allows him to allocate more funds toward paying down debt without needing to change his income or housing situation. Reducing expenses in categories such as entertainment, dining out, or clothing could help him achieve a better balance in his budget.
