Payoff Strategies

If the interest is exactly the same, then I would put all extra money against the smallest amount first. Then attack the larger one.

if it were me, i'd check your state laws for sol and determine date of last payment to guess who is gonna sue me first..after that is considered..if both are within sol, then i'd pay the smaller the majority of cashflow and send minimal to the larger..hence they both atleast get something and you still get far ahead..good luck

Sue me? I am not behind on any payments? lol

Regarding putting all the money against the smaller one, that makes sense if one balance is $10k and the other is $3k. But here, the balances are almost identical. I was just wondering if the same thing applies..

Let's look at the math. With the first method you can pay off card # 1 in month #2 and card #2 in month #4 plus have $700 extra that month. With the second method you pay off both cards in month #5.

Personally, method #1 (paying all towards smallest debt first) makes more sense for me because in month #2 you get one of the cards paid off. Which means no more added interest on that account. Plus...let's say something happens. Your hours get cut, or something needs to be repaired. If your cash flow slows down again or needs to be applied elsewhere, personally I want to only owe on 1 credit card and not 2.

Here's the math breakdown:

CC # 1: $1400 due
CC # 2: $1500 due

Let???s say your minimum on both is $100 per month. My figures does not take interest added into consideration since I don???t know your numbers, but since you say both interest amounts are the same it won???t affect our equations.

Method # 1: Pay all towards one card

Month #1:
$100 minimum + $700 extra to CC#1; remaining balance $600
$100 minimum to CC # 2, remaining balance $1400

Month #2:
$100 minimum plus $500 extra to CC # 1- CARD PAID OFF
$100 minimum and $200 extra to CC #2, remaining balance $1100

Month # 3: Now that you???ve paid off CC#1 you???re going to add that card???s minimum to your minimum to card #2, making your new minimum $200 per month
$200 minimum plus $700 extra to CC #2, remaining balance $200

Month #4:
$200 minimum pays off the card; you have $700 extra dollars this month!


Method #2: Split extra to two cards each month

Month #1
$100 minimum + $350 extra to CC#1; remaining balance $950
$100 minimum + $350 extra to CC#2; remaining balance $1050

Month #2
$100 minimum + $350 extra to CC#1; remaining balance $500
$100 minimum + $350 extra to CC#2; remaining balance $600

Month #3
$100 minimum + $350 extra to CC#1; remaining balance $475
$100 minimum + $350 extra to CC#2; remaining balance $575

Month #4
$100 minimum + $350 extra to CC#1; remaining balance $25
$100 minimum + $350 extra to CC#2; remaining balance $125

Month #5:
Pay off remaining two balances.

Thanks for taking the time to break that down. Wow!
I will go with your advice and stick with Method #1.

Thanks!

For credit score purposes you'd want to knock them below 50% of your limit. If that isn't an issue then it doesn't matter.

I have tried to settle with companies and they are refusing. I know i dont have that kind of moneey to do so. What should i do

I went to settle letters to these places that i oowe money to and they dont want to settle they want the whole amount and i dont have that money to do so. If any could help me repair my credit please do so