Donna
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call and find out the intrest rate!!! work on the highest first.
if the intrest rates are equal, the higher debt is 2700 more than the lower, so pay $135. more to the higher debt each payment until the debts are equal, (20 payments) or 270 more until equal, (10 payments)... then make equal payments or pay off one with the other until the debt is paid. |
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arklatexrat
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My suggestion would be to try and find out the interest rate of each. Customer service should be able to tell you, and it is usually listed on the monthly statement or your online account info as well. Attack the credit card with the highest interest rate first. If they are about the same, then go for the one with the smallest balance for two reasons.
1. You will see the impact of what you are doing sooner, which will give you the psychological boost you may need to keep you committed to this plan.
2. What is called the "snowball effect"--as soon as the smaller balance is paid off, you can apply that amount of $ toward the other card and be able to get it down sooner than if you kept paying the same amount you can afford now. It will help you build momentum to pay off the other card.
I like the practical financial advise of Dave Ramsey--he has a website as well as a radio show & books & tapes available that may help you with other budgeting and debt reduction tips. |
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Jo
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I was told (and have done this before) to pay off the smaller account and just applying minimum to the other accounts till you get them all paid off. No matter the interest, you will actually feel like you are accomplishing something and will be able to keep it up better. |
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?
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pay the highest interest rate off first |
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Anna R
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Put your biggest payment toward the largest balance. On your credit, it will show a higher debt to balance ratio and that's not good! |
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nicole_lynette
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I'd pay off that card that carries the larger balance first, regardless of your interest rate. Would you rather pay interest in a $5600 balance or a $2900 balance? Now, if for some reason, your lower balance carries an interest rate that is MUCH higher than the other card, then I'd pay the smaller one off first.
So my answer is pay the bigger one off as soon as you can. |
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Bill N
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Defiantly the one with the higher balance first, just remember to cut it up after paying it off! |
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mtchndjnmtch
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Look on your statement, it will tell you what the rate is. Pay off the highest interest rate first. You may also look at other card rates and get one that has less, then pay them off with the new card with less interest rates. But do Not miss a payment ,because if you do the rate goes back up .Most of the cards give 8.99% on them. But you miss a payment and it could be 28% !! |
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kmg1111
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I was told that They look at the amounts close to the credit limit. I would pay down that one first, then the the one with the higest interest. |
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Jerry W
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Don, My I suggest you pay off the smaller balance. But, also pay more than the payment on the other even if it's just a few pennies. (Your credit will report paid more than owed.)
Once the smaller card is paid off DO NOT CLOSE the account. You can cut up the card or freeze in the freezer to use only in an emergency but closing the account will hurt you.
Then use the same monies you were using for the smaller card and to pay off the larger credit card faster.
This will get you out of debt faster than paying longer on both cards. |
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Thin Kaboudit
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Mathematically, there is a way to calculate which card should be paid of first to minimize your total cost.
But in REAL life, it makes most sense to pay off the smallest balance first, because that will happen sooner, making you "feel good" about your progress towards becoming debt-free, and making it more likely you will stick with your plans to pay off your debts!
Best wishes! |
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PELT
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You HAVE to find out what's the interest rate and pay off first whichever has the highest.
If they are both the same rate, it may be a good idea to finish first with the one at $2,900 that way you can soon concentrate on paying off the other one. |
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ollieb
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What are the interest rates? You will save money by paying off the one with the highest rate 1st. Try to pay more than the minimum.
If the smaller balance was much lower say $500.00 I would say pay that 1st. You would find that it is a great boost to the morale when the cc is paid off. |
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Greg S
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Pay off the lower balance first. |
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Craig T
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Unless there is a dramatic difference in APR, pay off the smaller balance first |
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cutie pie
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get on the phone w/them----find out your interest rate-it's crucial-----it these are active cards & up to date payments, threaten to cancel if they don't lower the interest--whichever has the higher interest, that's the one u pay off first-----------------------------------... can also transfer the balance of one to the other if one has a lower interest rate-------------or, if ur credit is still pretty good, accept one of those 0% interest rate visa/mastercard offers online or in the mail, and transfer everything onto that, pay as much as u can each month-------- |
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Gabriel H
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Your credit will improve if all of your cards are below 50% of their limit so if you can get below that mark with your larger balance than do it. Or if you are above on both, pay both off until they are both below the 50% mark. |
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Jay P
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Hi Don, I would pay off the one with the lower balance first, because then it will show on your credit report as "PAID" sooner than the one with the larger balance. Also, keep in mind that interest in compounded daily with credit cards. I have always paid my credit cards four times a month (once a week) and always more than the minimum payment because usually the interst amounts to be more than the minimum payment so you're getting no where. (i.e...if your minimum payment each month is $100.00 but you pay $250.00 each month, I would pay $62.50 each week. By the time you're ready to pay the third week, your paying interest on $125.00 less than what you would normally pay). This will add up over time and will help your credit score. Let me know if that was helpful. |
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wcinct
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The idea is to pay as little interest as possible, so you should pay off the one with the higher interest rate. You can call the credit card companies and ask them to lower your interest rates. They may say no, but it's worth a shot.
Having said that, if you pay off the smaller balance first, you will have a sense of accomplishment, and you will feel better about paying off the bigger balance. You can then pay extra money on the bigger balance (with the money that you were paying on the smaller balance).
Always pay more than the minimum payment amount (every month). If you don't, it will take a very long time to pay them off. |
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Mel
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The interest rate is probably 20+% Get a bank loan and pay them both off and don't charge anything you can't pay cash for. |
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