You have a credit card that has a balance of $3,589.90 and a credit limit of $5,000. If you have a good credit rating OF 5.90%, how much must you pay at the end of the month to get the balance to the acceptable debt ratio percentage?
"acceptable debt ratio percentage" ?
Normally, debt ratio is debt to income, or debt to assests. I do not understand any debt ratio measuring current debt to possible debt.
69.7%
To determine the acceptable debt ratio percentage, we need to know the specific percentage designated as acceptable. If you provide that information, I can help you calculate the required payment amount.
To determine the acceptable debt ratio percentage, we need to know what percentage is considered acceptable for your credit rating. The acceptable debt ratio can vary depending on the lender and the individual's financial situation.
However, let's assume that the acceptable debt ratio for your credit rating of 5.90% is 30%. This means that you should aim to keep your credit card balance below 30% of your credit limit.
First, calculate 30% of your credit limit:
30% of $5,000 = $1,500
To find out how much you need to pay to get the balance to the acceptable debt ratio percentage, subtract your current balance from the acceptable limit:
$1,500 - $3,589.90 = -$2,089.90
In this case, you should pay off $2,089.90 to get your balance within the acceptable debt ratio percentage. However, negative values in this context don't make sense. So, in this scenario, you don't need to make a payment to get your balance within the acceptable debt ratio percentage. Your current balance is already within the acceptable limit for your credit rating.