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How to best use "extra funds" to pay down debt

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I have debt that is difficult for me to manage month to month, but I think I finally have it under control where I can play minimum payments.

Recently, I had an unfortunate, minor incident which gave me money via the insurance. So instead of using the money to replace the materialistic things that were taken, I would like to put it toward my debts.

What is the best way to use this money? I know there are systems out there, like snowballing, etc. But I am taking about a one time bulk payment that will help me get a jumpstart on debt relief.

I have multiple credit cards, some with high interest rates and high balances. Others are with medium sized balances and fixed payments (because they were cards that I opened when I was trying to fix my credit).

What is the best way to go about this? What card should I pay off? Or just make a big payment on one card?

For example, I have a CC that is fixed at $15 per month but the balance is low enough that I can pay it off in full. Another card I have has a high balance, I can't pay it off in full and making a large payment might make my monthly payments go down about $20 per month.


These "systems" also damage your credit severely. Let one go into collections which is required to settle on account and you will find that other creditors will reduce your credit limit to what you owe and close your accounts.

My suggestion is to pay your high interest rate cards down or off. And dont use the card again.

Sub: #1 posted on Wed, 05/01/2013 - 10:42

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Will paying the highest interest rate card off help my credit, or hurt it if I never use the card again. Should I close the card or just let it sit empty?

Sub: #2 posted on Tue, 05/07/2013 - 12:41

Tess Madrid Tess Madrid

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Sorry I am confused, SoapLady

Why do the systems damage credit, I was assuming the snowball system was just a process that could help me get to $0 on my CC balances. Do you mean the method of paying one card off at a time is damaging to credit scores?

Sub: #3 posted on Tue, 05/07/2013 - 13:51

Tess Madrid Tess Madrid

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