I have 3 credit cards that I am trying to pay off
I have 2 credit cards in the $2,000 range
I have 1 in the $500 range
Would you try to pay down the lowest or the highest debt first
I am tempted to pay the lowest first just because it'll be eliminated faster but I'm not sure if that's the wisest choice.
I pay $77 dollars a month to the $2000 credit cards
and I pay $20 to the $500 credit card. I have an extra $80.00 that I could be putting towards a creditor each month. The interest rate on the $2000 is about 10% and the %500 is I think about 8%.
With that said any suggestions
2007-10-23 06:11:35 · 8 answers · asked by K.C. 5 in Business & Finance ➔ Credit
Smarta%$ I have stopped using them years ago!!
2007-10-23 09:24:07 · update #1
Throw all the extra at the highest interest rate. You save the interest.
You might take a closer look at your budget and see if you can squeeze more out to throw at that debt. Stop eating out or buying new clothes or anything else you can put off buying.
You might consider a second job -- pizza delivery has flexible hours.
2007-10-23 06:20:55 · answer #1 · answered by bdancer222 7 · 0⤊ 1⤋
Pay the minimum on the 2 highest balance cards. Take any extra and knock out the one with a $500 balance. Once that is gone, you get a sense of accomplishment. Once the small one is gone, take that money and attack the next one. You can get out of this mess quicker if you tighten your budget.
You can also call the ones with the $2000 balance and negotiate lowering the interest rate. This can only be done if your account is in good standings.
2007-10-23 06:21:14 · answer #2 · answered by RB 5 · 1⤊ 0⤋
I would pay the $500 first. Then take the $20 you were paying for that one, and the extra $80, and apply it to the $2000 with the highest rate. By the time that one's done, you'll have $177 a month for the left over one.
And yes, call the creditors to see if they'll lower your rate.
AND STOP USING THEM!!!
2007-10-23 09:16:35 · answer #3 · answered by Debdeb 7 · 0⤊ 0⤋
is this a trick question? financial answer is Low debt severe activity. that's a no-brainer. some people will consolidate their low debt and placed them on the low activity enjoying cards. Others will pay off the low debt. i want to advise paying off, credit card activity isn't something extra then used bathroom paper; you want to do away with it as immediately as achieveable and the waste is merely as undesirable. credit answer is; when you pay off the low debt, do not close the enjoying cards do exactly not use them in many cases. by no skill use extra the ten% of the decrease and pay off the stability before 30 days of the acquisition. this way there is not any activity paid and your scores stay good. Overpay on your bigger debt enjoying cards and get them paid off as immediately as achieveable. yet be sure you shop them open.
2016-12-15 07:24:57 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Look at the Interest rates. That will tell you which to pay off first. I'd go with the 10% one.
2007-10-23 06:43:22 · answer #5 · answered by Rabbit 5 · 0⤊ 1⤋
Make sure you meet the minimum payments on time for all cards. Then put any extra money into the one with the highest interest rate.
2007-10-23 06:16:06 · answer #6 · answered by Anonymous · 1⤊ 2⤋
Pay the highest interest rate off first.
2007-10-23 06:16:17 · answer #7 · answered by Johnny 7 · 1⤊ 1⤋
take into account the APR of each cards, also think of the utilization rate (not more than 50% for each).
2007-10-23 06:21:02 · answer #8 · answered by Philippe S 2 · 0⤊ 1⤋