How should I pay off my credit cards,?

Question

1) pay higher interest rates off first
2) pay lower balances off first

Answer 1

Do some research and find a credit card that has no interest on transfers, or find one with a super low interest and combine them all on one card (transfer all your balances to this card). THEN, pay off the low or no interest card.

Answer 2

Very important, never miss a payment. Keep your credit score as high as possible. If it is high now, do a web search for a low rate balance transfer. You can consolidate your debt so that all of your payments go toward lowering the debt.

If you can payoff the "lower balances" within a couple months, do that first. If your balances would all take at least 12 months to clear, then I think you should target the highest interest rates first.

Answer 3

I would pay off the lower balances first. Pay on all the credit cards-at least minimum payment. However, pay extra on the lower balance. Then when that card is paid off, I would spilt up that monthly payment between the other credit card and a little extra on the next lowest balance credit card. Interest rate won't effect the payment once, you still pay a finance charge when you still owe money.

Answer 4

First things first, make sure that you've changed your lifestyle so that you are living beneath your means. There's no point in paying off credit cards if you still spend more than you bring in -- they'll just run up again.

Once your income/expense situation is under control, you can consider paying off the debts. If you have high interest rates, try consolidating your loan first under a lower interest rate. You'll want to make at least the minimum payment on every single debt -- never miss a payment -- but pay extra money you have to the highest interest debts first. That way you'll end up spending the least on interest and keeping your credit history as clean as possible.

Good luck -- credit card debt stinks to high hell and you need to free yourself from it if you ever wish to have a financially independent life.

Doug

Answer 5

definitely the ones with higher interest rate first, you'll save money this way,oninterest charges. do this regardless of amount outstanding on bill.

no matter what type of loan you have always try to pay the higher inerest loans first.

or if possible consolidate them to 1 card with low rate and pay from there

Answer 6

lower balances. the interest will not make that much difference in the long run. once you start paying the smallest ones off, you will see your progress and get more agressive with the payments. good luck! get rid of those cards forever!!

Answer 7

Personally, I would hit the high intrest rates first...some of those can be brutal. and I see that you say that you have "credit cards"...I would narrow that down to one credit card from now on...easier to keep track of.

Answer 8

higher interest rates first

Answer 9

try for a loan