Tony wants to pay off his credit card balances within 12 months. He is trying to decide if he should use his $1,000 in savings to pay off part of the balances or if he should transfer the balances to a new card with a low introductory rate. The new credit card has an introductory rate of 7% but charges a balance transfer fee of $75 for each balance
transfer.
Evaluate Tony's options and recommend the debt management plan that would give him the lowest
monthly payment.
Credit Card A: $794
Credit Card B: $579

A. Pay off Credit Card B using the savings. Transfer the balance of Credit Card A to the new
card.

B. Pay off Credit Card A using the savings. Transfer the balance of Credit Card B to the new card.

C. Pay off $500 from both Credit Card A and Credit Card B. Transfer the remaining balances
from both cards to the new card.

D. Pay off all of Credit Card A, and $206 of Credit Card B. Transfer the remaining balance of
Credit Card B to the new card.