2006-12-15 19:24:40 · 5 answers · asked by eellbbrown 1 in Business & Finance ➔ Credit
Depends on the balance and APR :)
If you're talking in terms of credit card APRs (~8-20%) and balances at least one or more order of magnitudes in difference, pay off the one with the higher APR.
2006-12-15 19:30:18 · answer #1 · answered by vaca loca 3 · 0⤊ 0⤋
The first one to pay off is the one or ones with an annual fee and then close those. There's no reason to pay $20-$50 a year in membership fees plus interest. If you have the option to transfer all balances to a lower rate credit card or loan, that's the ideal. If that is not an option, then I would say depending on how the higher apr is and how low the balance is, go in order by highest apr and continue to pay as much as you can until all debt is gone. Try to pay minimums plus a little more on each debt if and when possible. Eventually all debt will be paid in full so it doesn't matter what cards you pay off or in what order as much as getting them paid asap and NOT using credit cards in the future. See if you can get a consolidation at 0% or a home equity loan (not line of credit) but get out of the trap.
2006-12-15 19:32:47 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Pay off the higher APR first, but don't miss payments or pay short on the other debt.
2006-12-15 19:45:34 · answer #3 · answered by Jonathan T 2 · 0⤊ 0⤋
Always pay of highest % rate first because that is $$ down the drain and it is not tax deductible unless it is mortgage.
2006-12-15 19:31:06 · answer #4 · answered by kate 7 · 0⤊ 0⤋
pay off higher interest always
2006-12-16 02:18:08 · answer #5 · answered by Anonymous · 0⤊ 0⤋