paying off one at a time or paying a few
Date: Mon, 01/03/2011 - 09:16
I think it would be better to pay the highest interest one off f
I think it would be better to pay the highest interest one off first. I would make minimum payments to the 2 lowest interest cards and try to make larger payments to the highest. Once the highest is paid off, then start on the next highest.
Pay off the smallest balance first. Then take the money you were
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!
Ideally you should first pay-off the one that has the highest in
Ideally you should first pay-off the one that has the highest interest rate. It will save more money for you, and you'll be able to pay-off other cards sooner.
How much are we talking? Are you behind currently? If you're not
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.