Okay, I have 2 store cards and a discover card. I owe money on all of them but have been paying the minimums every month - it's just that i'm tired of it and want to just pay them off, at least the store cards and keep the discover card. Here's what I wanna do. My bank offered me their credit card, which is $1000 credit but I said no, seeing as how I already have 3 cards...but now, I'm thinking I could maybe get the credit card from the bank and use it to pay off at least the store cards. Then I'll just be left with 2 cards - the card the bank gave me and my Discover card for emergencies. Is this a good idea? Or will I just get myself in more trouble because my credit is good right now...I'm not working right now, but should be soon, so I was gonna do this once I start working...
2007-11-12 06:57:00 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
You should NEVER use credit to pay off credit!!! This is just borrowing trouble.
What you should do is use the 'debt eliminator' method: figure out which card has the highest interest and pay as much extra on that card as you can until its paid off (while still paying the minimum on the other cards.)
Once you have one paid off, then take the same amount of money and add it to your second store card. This will get them paid off a lot quicker.
(AND QUIT SPENDING UNTIL YOU GET EVERYTHING PAID OFF!)
Hope this helps!
2007-11-12 07:05:17 · answer #1 · answered by sinisterphoenix 2 · 0⤊ 0⤋
If your new card is 0 interest or a substantially less interest rate then yes, the key is to not reuse those store cards, then pay down that new card fast. This does in fact raise your credit score, as you have more available but use a lesser percentage. and if at a lower rate pay more towards principle and less towards interest, paying it off quicker
2007-11-12 09:29:00 · answer #2 · answered by Pengy 7 · 1⤊ 0⤋
Following ruling storm's advise. Briefly what you'll learn is: pay off your cards and cut them up. Do it over Dave's call in program and he'll give you a gift. Set back cash for emergencies. I like your other answer, too, credit cards are the devil.
2007-11-12 07:24:51 · answer #3 · answered by starfishltd 5 · 0⤊ 2⤋
yes pay it off!! and try not to spend anymore! credit cards are the devil :) lol
2007-11-12 07:00:33 · answer #4 · answered by normajean_81 3 · 0⤊ 1⤋
http://www.daveramsey.com/
2007-11-12 06:59:34 · answer #5 · answered by Anonymous · 0⤊ 2⤋