Skip to main content

Debtconsolidationcare.com - the USA consumer forum

paying off one at a time or paying a few

Date: Mon, 01/03/2011 - 09:16

Submitted by islefan3949
on Mon, 01/03/2011 - 09:16

Posts: 273 Credits: [Donate]

Total Replies: 4


I currently have 3 credit cards that I am working toward paying the balances off on. What I am wondering is I'm going to be getting a bonus here at work and will also be having extra money coming in from other places, what I'm wondering is should I put it all toward the balance of one or am I better off spreading it out a little bit each of them as it comes in.


Pay off the smallest balance first. Then take the money you were using to put toward the one you paid off and make double payments on another. Afther that one is gone, do the same to the last one. If you spread it out initially, you will still be making three payments, this way you are cutting one out completely. Hope it helps!


lrhall41

Submitted by rvl_73 on Mon, 01/03/2011 - 11:48

( Posts: 154 | Credits: )


How much are we talking? Are you behind currently? If you're not that concerned about your credit score, you may want to consider settlement.

If you're current and just want to get it paid off, you're better off paying off whichever one has the highest interest rate, as others have said. Unless you don't have enough to pay the full balance. If that's the case, pay whichever you can in full and then start paying down the highest interest rate card next. For instance:

Card 1 (highest interest) balance = $12,000
Card 2 (2nd highest interest) balance = $8,000
Card 3 (lowest interest) balance = $9000

If your bonus is $12,000, pay off card 1.
If your bonus is $10,000, pay off card 2 and pay the extra $2000 on card 1.

Or, with settlement, you could stop paying cards 1 and 2 then settle both for $10,000 or less and still keep card 3, the lowest interest card, open for emergencies. With card 1 and card 2 out of the way, you could pay down card 3 much more quickly.

It all depends on what your ultimate goal is.


lrhall41

Submitted by OhioGal1 on Mon, 01/10/2011 - 05:32

( Posts: 5253 | Credits: )