or is it better to pay the smaller more managable ones first?
2007-03-02 11:24:00 · 11 answers · asked by Anonymous in Business & Finance ➔ Credit
ALWAYS pay the ones with highest interest first!!
They are costing a LOT more in the long run.
2007-03-02 11:33:03 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Always pay off the higher interest rate card first. You'll save the most money in the long run. The other cards can be paid off slowly and if the interest isn't too high you can pay a little over minimum and it will make a difference. No matter what pay the same amount every month on the high interest card even as the minimum payment required goes down. You'll pay it down much faster that way. After it's paid off, if you still owe on other cards pay them off with the same amount of money you were paying on the high card.
And always pay on time. Also, if say your minimum due is $75, and you plan on paying 200 that month, split it, make 2 payments, one in the beginning of the month and one before the due date, reduces interest charged.
2007-03-02 19:36:36 · answer #2 · answered by Anonymous · 0⤊ 0⤋
pay off the higher interest rate one first. the longer you have a balance in the higher interest rate credit card, the more you end up paying.
2007-03-02 19:32:52 · answer #3 · answered by Special K 4 · 0⤊ 0⤋
Pay off the higher balance/rate card. Then apply the payments you were putting on that card to the smaller amounts; they'll be paid off rapidly that way.
2007-03-02 19:31:51 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Pay off the higher interest cards first.
2007-03-02 19:31:34 · answer #5 · answered by RUDOLPH M 4 · 0⤊ 0⤋
Mathematically, paying the highest INTEREST RATE first, regardless of the balance, results in less total interest. Behaviorally, the quick 'victory' of paying off smaller debts sooner make you more likely to keep up a debt reduction plan. If you give up your life to get out of debt, the math comes out fairly close in most cases.
2007-03-02 21:14:34 · answer #6 · answered by STEVEN F 7 · 0⤊ 0⤋
Pay off the highest interest first it costs you more in the long run
2007-03-06 18:46:16 · answer #7 · answered by *G* 3 · 0⤊ 0⤋
IT IS BETTER TO PAY OFF THE HIGHER INTREST RATES FIRST THEN THE ONES WITH LOWER RATES AND BALANCES
2007-03-02 19:28:00 · answer #8 · answered by pittbull mommy 1 · 0⤊ 0⤋
It is even far better to transfer those balances to zero-interest cards and get them paid off fast.
2007-03-02 19:31:06 · answer #9 · answered by The Rabbi 5 · 0⤊ 0⤋
you could try paying off all of the small ones then apply all of what you used to pay for those on the big one.
2007-03-02 19:35:11 · answer #10 · answered by dwm5_62 3 · 0⤊ 0⤋