PRINTABLE: Household Math™: Cutting the budget

Test your knowledge by trying to solve this DebtSmart, Household Math™ problem! After you complete the problem, you’ll get the solution and explanation.

Susan spends 30% of her income on housing expenses, 30% repaying her credit card debts, 20% on all taxes, 10% on groceries, 5% on clothing, and saves what’s left over. She decides that she wants to pay back her debt more quickly, and to do that, she needs to make a few budget cuts. Susan cuts the grocery bill by 25%, the clothing spending in half, and dedicates all the money she used to save toward the credit card debts. How much, by percentage, of her income is now being used for repaying credit card debt?

	50%
	45%
	40%
	35%
	I don't know!