2006-09-27 14:08:04 · 8 answers · asked by Anonymous in Business & Finance ➔ Credit
Depends upon your credit limit. As a rule, you should ALWAYS keep any revolving debt (credit cards) balances at 40% or less of the maximum credit limit. Credit reporting agencies (Trans Union, Equifax, Experian) rate your balances versus your credit limits on this scale. Too many new open accounts will hurt you as well. I see it everyday on credit reports..."proportion of revolving balances to limits in excess"....
2006-09-27 14:14:11 · answer #1 · answered by naughty_mattress_monkey 4 · 0⤊ 0⤋
It depends on the terms of the cards and how much hassle you want remembering which cards to pay and when.
The most important thing is the interest rate. If you have one card that has a limit greater than 20K and has a low interest rate, go with that one. Let's say that you have 6 cards; 1st card has a 10,000 limit and 10% interest; 2nd card has 5,000 limit and 11% interest; 3rd has 3,000 limit and 15% interest; 4th has 1,000 limit and 17% interest; 5th has 1,000 limit and 20% interest; 6th has 1,000 limit and 25% interest.
You would want to put 10,000 on the 1st, 5,000 on the 2nd, 3,000 on the 3rd, 1,000 on the 4th, 1,000 on the 5th, and none on the 6th since you already have the 20,000 covered.
Keep in mind though that many cards have 0% interest when you transfer a balance, and that can affect the decision. If you have a high interest card but 0% interest for 6 months, then transfer to that card what you can pay off in 6 months.
Hope this makes sense.
2006-09-27 14:14:33 · answer #2 · answered by gilly86 2 · 0⤊ 0⤋
Transfer your credit card debt to the one with the lowest interest rate and cut up the rest of them. Just focus on paying off this one credit card. It's easier to keep track of and pay for 1 credit card rather than 6. And stop spending money that you don't have. Try to make some sort of budget and stick to it. If the credit card balance is mostly due to necessary expenses, try to lower these expenses as much as you can.
2006-09-27 22:17:34 · answer #3 · answered by Shannon A 3 · 0⤊ 0⤋
It depends on the interest rate. It would be best to owe 0k on credit cards, and owe the 20k on a home equity loan. At least you'd get a tax deduction.
2006-09-27 14:10:38 · answer #4 · answered by ralph.cramdon 5 · 0⤊ 1⤋
The best would be to owe nothing. But if you have to put it on ONE card, find out which one has the LOWEST interest rate and then add it all to that card. Pay TRIPLE or QUADRUPLE or MORE then then minimum to get it paid off faster!
2006-09-27 14:39:43 · answer #5 · answered by Crazy Mama 5 · 0⤊ 0⤋
The best answer is to owe none of it. The rates on cards are the absolute worst. Best way is to probably combine them and get a low rate transfer deal. But pay them off quickly please.
2006-09-27 14:10:06 · answer #6 · answered by wangs4 2 · 0⤊ 1⤋
refinance to one loan or card at the lowest rate and best deal you can find - save a fortune in interest and get rid of some debt if you can
2006-09-27 14:16:32 · answer #7 · answered by Anonymous · 0⤊ 0⤋
on one card because they usually will give you a lower interest rate that way. you can also pay it off slower
2006-09-27 14:10:06 · answer #8 · answered by scottishchristiansen 3 · 0⤊ 1⤋