What is the best way to pay off these two credit cards?

Question

I have 29K in credit card debt, with 29.9% interest on both. If I get 15k cash given to me, would it be better to pay off one card or pay each one down half way? Please let me know, I'm desperately trying to get our of credit card debt. I'm always on time with my payments and I have a good credit score, but the interest is so hight that each time I make a payment that's all I really paying-interest!!!!!!!!!!!!!!

Answer 1

Most expert usually recommend you concentrating paying on card off while paying only the minimum on the second card. Then once you pay off the first card apply both payments mentioned above to pay off the second card much much faster.
Please remember, the 15K doesn't do you any good if you fool yourself by charging again while you have a balance that you cannot pay off. You will be just digging youself more debt.
Good luck and with a 15K chunck taken out of one of the cards, you will be able to see with some focus that you could get out of this consumer debt. Good luck!

Answer 2

Definately pay one off in full. Then, rather than get a 0% card as the others have suggested (people are not very good at being disciplined with credit cards) you could get a personal loan to pay out the second credit card. That way you are at a lower interest rate so your repayment will be less than what you're paying on your credit card at the moment and best of all you have an end date, so you know in 5 years, or however long you choose to take the personal loan over, that it will be gone! I read the other day that if you pay your minimum repayment on your credit card every month and nothing more, but also don't spend on it, you will pay it of in 30 YEARS!!!! Definately try to get out of them. GoodLuck

Answer 3

Go with the Dave Ramsey school of thought. Pay as much as you can on the card with the lowest balance. Continue to make as much of a payment as you can on the lower balance card and adjust your budget to keep doing it. After you have paid off the first card, you will be able to take what you were paying monthly on that card and apply it to the other card. This snowball effect ends up paying debts down as fast as you can.

The key is to NOT USE THE CARDS until they are completely paid off.

Ask yourself this question, "Would I go to a bank and ask for a loan to buy this product or service?"

Essentially, that is what you are doing each time you use your credit card. Use cash to buy things and take the credit cards out of your wallet.

People always say that they need a credit card in case of emergencies. When it is all said and done, you most likely have a cell phone and could contact someone in case there was such an emergency.

Good luck and welcome to credit card hell. We have all been there.

Answer 4

If it were me, I would pay the lowest one off, if you have enough to do that. Then you can make solid monthly (above average amounts) to get the other one down and down and down. Plus, if one's paid off and you need it, it'll be there for you. Not to run up again, but in case of emergency, you know?
Plus, if you get one paid, you can probably open a new credit card, look for interest deals, and transfer the balance to a card with lower interest. Cause you are paying way more interest than I am..So start to investigate and research interest rates and credit cards.
I transfered a balance and got a MUCH better deal. good luck.

Answer 5

Contact each of the creditors and ask them to lower your interest rate (sometimes they will do this but you MUST request to speak with a supervisor). If they refuse...contact Consumer Credit Counseling thru the Catholic Charities (you do NOT have to be Catholic to get help here). THEY will contact the creditors on your behalf and have better success in getting interest rates lowered. Once the rates are lower you can manage the debt using part of the $15K. CCC will also help you plan a budget so you don't fall into this type of credit card debt again! That is a huge ineterest for someone with good credit...you need to get in re-evaluated

Answer 6

first call you credit card companys and ask them for a lower APR if you have a good payment history with them and are on time as you say they usualy will lower it. if not find out which card has the higher apr and pay that one with the money you get and then pay off the one with the lower apr, always send more then the min ammount or you will end up paying for the credit card until your 80! after that cancel the suckers, all it is, is temptentation and if you pay it off, youll be more likely to use it again. i am going through a credit assistance program to pay off my debt you may looking into something like that, thoughs companys can lower your apr and your monthly payment so you can pay it off sooner and be done with it. good luck.

Answer 7

Welcome to the credit card nightmare. I cut my cards up and paid the highest one off first by paying more each month than the minimum. This way they couldn't charge me the total interest rate.
Have you thought of consolidating your bills? There are agencies that will help you to do that and can bring down your payments.
Just remember, that having a credit card is a money pit. Banks thrive on your misery of trying to pay them back.
Get rid of them, before you have to go bankrupt, just to get rid of the debt.

Answer 8

well first you need to find a credit card or two wich have the one year at 0% APR. and tranfer as much as you can into one of those. Then use the cash to pay off the rest. Definently pay them off one at a time and pay the one with the higher % rate first.

Answer 9

Pay it all on one . Make minium payment each month on the other one.Put as much as you can afford each month toward the card with the lower balance until it is paid off.Then start on the other one pay all you can afford until it is paid off . DONT USE EITHER CARD if you do you will defeat your purpose of getting them oaid off. I Would watch for special promotions on balance transfers.You can search the web and find them as low as 7.5 % and no interest from 6 mo to a year.

Answer 10

Pay one first, so the minimum payment is less, then use it for nessecary purchases, but KEEP it paid off each month, so there is no interest charge on it. Use whatever cash is left over each month to cover as much of the balance on the remaining card as possible.