whotoblame
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Pay off the highest interest cards first. |
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Goonhilda
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Ask yourself: Do you want to be out of debt fast or do you want to feel good about yourself temporarily?
If you want to be out of debt fast, ignore the AMOUNTS on the cards and focus on the INTEREST RATE. The interest rate is what is eating your money. Even if you only have a couple of hundred dollars on the high rate card, that is costing you the most interest per dollar borrowed. So your money would be saving you more interest by putting it on that card. Your money wouldn't save you as much if you put it on another card with a far larger amount borrowed but a lower interest rate, because it wouldn't make as effective a dint in the principle.
Money on the highest interest card is effectively saving you that interest. So go for the biggest savings and pay off the highest rate card first. That means your money will work harder at getting rid of the debt, and you can move onto the next card sooner.
Always pay the most off the highest rate card, while making the minimums on the lower rate cards. When you have cleared the highest rate card, move onto the second highest. That is the fastest way to get out of debt.
Best wishes |
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sharonvania
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Pay off the ones with the highest interest rates first. If you're thinking of closing any of them, keep open the ones that you've had the longest credit history with. |
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mel s
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Highest interest rate first. That is just throwing money in the trash |
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COCO
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I would pay the small one first; the small will be out of the way;then concentrate on paying the big one. |
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Jeff
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The ongoing debate:
1) Pay off the small ones first
2) Pay off the highest interest first.
Mathematically, paying off the highest interest saves the most money.
Psychologically, paying off the small ones gives you more incentive to continue the process.
So, it depends on you.
Can you stick with the plan for two or three YEARS if it doesn't look like you've made any progress by this Christmas? |
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robert w
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math wise is not correct.
no one wins their first marathon.
they start by walking then trotting then short runs then build up to long runs then marathons.
pay small off FIRST u win more often , u have the blood taste of winning, so u can do more.
try eating an elephant by urself the first time and u quit/lose.
interest rate doesn't matter if u do not win often enough. |
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Spock (rhp)
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smallest first
it is critical that you clear one card of all debt, and then use ONLY that one card for new purchases. You then PAY OFF this card every month without fail.
this stops interest from being added to your current purchases -- which is critical to stopping the hole from getting deeper. |
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tickled blue
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the ones with the highest interest rates....then the small balances, then the larger balances |
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La Vie Boheme
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Pay the higher interest rate CC's off first. |
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Kit
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It depends on which one has a higher interest rate. I'd pay off the highest interest rate one, starting with the smaller balance, to get it out of the way, then keep working my way up from there. That way when you acquire interest, it's not as bad. |
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jujubeee
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acording to dave ramsey you should start with the smallest credit cards first and then work your way up to the larger cards. the reason why is it keeps you motivated when you see progress and after you pay off the smaller cards you can apply the $ you were budgeting for them to the larger cards and you will pay those off even faster. its called the debt snow ball. you should read the total money make over by dave ramsey . the book is really fast, easy reading im like the busiest person in the world and i read it in 2 days. it really will help you out. also check out dave ramsey website. good http://www.daveramsey.com/
also do not do debt consolidation its a rip off. |
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Modern_Muslimah
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SMALLEST ones first. This #1 gives you a sense of accomplishment and success while making minimum payments on the others. Also, call the credit card companies and try to reduce your intrest rates. Check out Dave Ramsey's Financial Peace. Try to find him on the internet or radio. |
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Happy101010
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Small ones.
If you are in real trouble, you could try to get all of your debts consolidated. You can also ask for interest rates to be decreased.
Furthermore, if you are experiencing a harship (divorce, partner moved out, natural disaster, death in family...) you can get fees waived for a while. |
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Master and Commander
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get rid of the large balances first. Large balances are forcing you to pay higher amounts in intrest. |
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Maggie BR
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What ever has the highest interest. But you will feel you are accomplishing more if you pay off the smallest. |
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Drifter Scott
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Big first so that you can get them out of the way then just pay off the small ones ! |
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