would u rather pay off one credit card's entire balance at one time and then pay off the other one once u have enough money or would u rather divide the money and make big payments on two creditcards at the same time.
2007-05-13 03:46:01 · 8 answers · asked by skibunny 1 in Business & Finance ➔ Personal Finance
Well you want to pay the entire balance of the highest interest rate card first, then you can start making bigger payments on the other card.
2007-05-13 03:56:09 · answer #1 · answered by Julie and Jason 2 · 0⤊ 1⤋
What's the point of earning 1% interest on a savings account when you are paying out 15% interest on a credit card balance? You're losing money. Pay off the credit card and start saving your safety cushion again. If you run into an EMERGENCY while building up your savings again you can use the credit card. Do not use the credit card for anything else!
2016-05-17 07:04:59 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Well, we see these questions like this but it's impossible to answer without having more information. It depends on the dollar figures involved and interest rates and so forth. If you have money in a regular savings account, you are making for all practical purposes zero interest, and so I would suggest paying off high interest credit cards in that case. Pay off the highest interest rate credit card first, and then the other. I would lean definately toward getting rid of the highest rate first followed by the other rather than tackling two at one time. But, if that "savings" is making good interest, like 10-12% a year then I would advise in a different direction, it just depends on the particulars.
2007-05-13 03:56:16 · answer #3 · answered by The Scorpion 6 · 0⤊ 0⤋
You need to determine the answer to your financial question yourself. Remember when you pay off debt such as a Credit Card you are paying "Yourself" so its a good idea to reduce your outstanding Credit Card debt because the monthly minimum amount will also be reduced. You should avoid Credit Card usage until you have established a personal Budget for income and expenses and use the Credit Card(s) wisely. I would recommend to keep at minimum 6 months worth of income in a Savings Account for emergency purposes. Good Luck! :-)
2007-05-13 03:52:09 · answer #4 · answered by JEDI MASTER YODA 4 · 0⤊ 0⤋
Pay off one then the other. By dividing payments between the two you end up paying twice the amount of interest for a longer period of time.
2007-05-13 03:57:05 · answer #5 · answered by Industry_Kitty 3 · 0⤊ 0⤋
If the interest rates on the two are the same, then it doesn't really matter. If one has a higher rate, pay that off first - and don't run the balance back up.
2007-05-13 03:59:18 · answer #6 · answered by Judy 7 · 1⤊ 0⤋
Pay off the smallest debt first. Then you can put any extra money in your budget towards the other.
2007-05-13 15:28:07 · answer #7 · answered by Jaclyn&Dave 5 · 0⤊ 0⤋
A credit card reminds me of a guillotine blade and your head is under it! Get out of debt and stay out of debt!
2007-05-13 05:02:26 · answer #8 · answered by Anonymous · 0⤊ 0⤋