Paying of Credit Card Help

167
119
Joined May 8, 2013
Ok so I'll try to keep it short and simple. 3 maxed out credit cards, have 1000 to pay, whats the best way to go about it?

Maxed out CC 1 - $700, gets charged interest

Maxed out CC 2- $2700, gets charged interest

Maxed out CC 3- $3500, doesn't have interest for another 6 months

So the question is, where is it best to start paying off with the 1000 dollars?
 
3,101
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Joined Feb 3, 2012
$700 on #1, $300 on #2, then make sure you don't add anymore to any of them if possible
 
10,855
2,630
Joined Apr 30, 2011
Ok so I'll try to keep it short and simple. 3 maxed out credit cards, have 1000 to pay, whats the best way to go about it?

Maxed out CC 1 - $700, gets charged interest

Maxed out CC 2- $2700, gets charged interest

Maxed out CC 3- $3500, doesn't have interest for another 6 months

So the question is, where is it best to start paying off with the 1000 dollars?
Pay whichever CC 1 or 2 that has the highest interest. In the meantime, find a new CC with 0% APR & no fee balance transfer and transfer the remaining $2400. Make sure you read the fine print before signing up for that card. Pay off ASAP.

Also, stop spending money.
 
1,327
186
Joined Jun 9, 2011
No. Don't listen to all of these people.

Pay off the one with the highest interest first. Then pay out the next one, and then when you are done pay off the one with no interest.

If the one with 0 interest has a high *** rate, then pay that one off if you can before they charge you anything or transfer it.
 
Last edited:
3,949
1,194
Joined Nov 16, 2001
No. Don't listen to all of these people.

Pay off the one with the highest interest first. Then pay out the next one, and then when you are done pay off the one with no interest.

If the one with 0 interest has a high *** rate, then pay that one off if you can before they charge you anything or transfer it.
Actually, it's been proven to pay the smallest debt first regardless of interest rate. If this were a mathematical issue, people won't get into credit card debt in the first place. Spending is an emotional issue and so is getting out of debt.

http://business.time.com/2012/08/16/the-verdict-is-in-tackle-smaller-debts-first/#ixzz23jtjC6W5
 
1,327
186
Joined Jun 9, 2011
Actually, it's been proven to pay the smallest debt first regardless of interest rate. If this were a mathematical issue, people won't get into credit card debt in the first place. Spending is an emotional issue and so is getting out of debt.

http://business.time.com/2012/08/16/the-verdict-is-in-tackle-smaller-debts-first/#ixzz23jtjC6W5
OP are you sad :frown:? No >D?

Then pay off the one with the higher interest rate first.


The exact opposite of what you said has been proven as well. It all depends on the individual group of people you use for the study. Everyone is different. If you do the math, then you'll see that what I said is better.


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167
119
Joined May 8, 2013
Wouldn't it make more sense to pay off the higher credit cards since the lowest one would be the easiest?
 
1,723
673
Joined Aug 8, 2005
Ok so I'll try to keep it short and simple. 3 maxed out credit cards, have 1000 to pay, whats the best way to go about it?

Maxed out CC 1 - $700, gets charged interest

Maxed out CC 2- $2700, gets charged interest

Maxed out CC 3- $3500, doesn't have interest for another 6 months

So the question is, where is it best to start paying off with the 1000 dollars?
I'd normally say pay off $1000 off the card with the highest interest like someone said. BUT if all you have is $1000 to pay off for the foreseeable future, I'd fully pay off the $700 one first. That way you don't accrue any more interest on it.

It may seem to make sense to pay off the highest interest card first to save money, but it might not be.

If you pay $1000 off the $2700 debt, you'd still have interest collecting on both the $700 and now $1700 cards after that. If you pay off the $700 card, you'd only be paying accruing interest on one card.

If you won't have any money to pay off these cards soon, I'd fully pay off the $700 card right now.
 
1,984
703
Joined Jan 4, 2006
Ok so I'll try to keep it short and simple. 3 maxed out credit cards, have 1000 to pay, whats the best way to go about it?

Maxed out CC 1 - $700, gets charged interest

Maxed out CC 2- $2700, gets charged interest

Maxed out CC 3- $3500, doesn't have interest for another 6 months

So the question is, where is it best to start paying off with the 1000 dollars?
What I've done and worked for me is I consolidated my CC at a credit union and destoryed the cards. I put my full attention in paying off that loan and got it done in one year.
 
3,949
1,194
Joined Nov 16, 2001
Actually, it's been proven to pay the smallest debt first regardless of interest rate. If this were a mathematical issue, people won't get into credit card debt in the first place. Spending is an emotional issue and so is getting out of debt.

http://business.time.com/2012/08/16/the-verdict-is-in-tackle-smaller-debts-first/#ixzz23jtjC6W5
OP are you sad
? No
?

Then pay off the one with the higher interest rate first.


The exact opposite of what you said has been proven as well. It all depends on the individual group of people you use for the study. Everyone is different. If you do the math, then you'll see that what I said is better.


Ya, I know the math works out. However, after helping several dozen families get out of $10,000-200,000 worth of debt, I've come to believe that the method I've mentioned is better since you're playing off your emotions more than math. In his case, he can do either one since the totals are so small, but it wouldn't hurt at all to completely knock off the smaller debt regardless of interest rate so he only has to focus on one interest accruing account.
 
6,361
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Joined Sep 29, 2004
Please dont tell me all this money was spent on shoes.

Pay the first one off. Then start sending more than the minimum payment to the next one (Or preferable all three).
 
47,699
16,318
Joined Feb 12, 2005
Pay the smallest one off.

I've been here before. I was just spinning my wheels trying to pay it back, so it felt like I was getting nowhere. Make a payment, then a few days later that would be chopped in half from interest owed.

I switched it up and knocked down the small CC with a few payments and it felt like a little burden had been lifted and gave me momentum to pay off the rest.
 
47,699
16,318
Joined Feb 12, 2005
What are the interest rates on the card? It may be an idea to get a debt consolidation loan that has an interest rate lower than the average interest you're paying. It also lumps the payments together so that don't have to pay here and there. May end up being cheaper.
 
1,327
186
Joined Jun 9, 2011
Ya, I know the math works out. However, after helping several dozen families get out of $10,000-200,000 worth of debt, I've come to believe that the method I've mentioned is better since you're playing off your emotions more than math. In his case, he can do either one since the totals are so small, but it wouldn't hurt at all to completely knock off the smaller debt regardless of interest rate so he only has to focus on one interest accruing account.
See exactly. $10,000 and up is understandable. But this is a smaller debt. In my opinion my theory works for these smaller depts, but in deep debt I definitely believe its impulsive spending to a certain extent.
 
4,697
723
Joined Apr 12, 2007
What are the interest rates on the card? It may be an idea to get a debt consolidation loan that has an interest rate lower than the average interest you're paying. It also lumps the payments together so that don't have to pay here and there. May end up being cheaper.
Never liked consolidation loans. They just open the CCs for people to run them back up. Now they have the CC payments again and the Debt consolidation loan payment as well. I'm telling you guys, create an account at readyforzero.com! It has so many benefits. It's similar to Mint but focuses on getting you out of debt.
 
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