Credit card situation is out of control

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Reference no: EM131594057

Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit cards with the following loan balances and APRs: Card 1, exist4, 700, 21%: Card 2, exist5, 800, 25%: and Card 3, exist3, 400, 18%. Interest compounds monthly on all loan balances. A credit card loan consolidation company has captured Mary's attention by stating they can save Mary 17% per month on her credit card payments. This company charges 16.5% APR. Is the company's claim correct? Assume a 10-year repayment period.

Mary's current minimum monthly payments are exist (Round to the nearest cent.)

Reference no: EM131594057

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