No. of Recommendations: 0
hey all, I have a question, I have three credit cards to pay off, what's better: concentrate on one to pay larger amount on the one that have higher interest rates, and others smaller, or make all the equally payment?

Thanks for any suggestions you may have

WGarr300@aol.com
Print the post Back To Top
No. of Recommendations: 0
Can you roll them all over onto the one with the lowest interest? Otherwise, I've heard that it is best to focus on the one with the highest interest -- make larger payments to that one while continuing to make minimum payments to the other two. Once that one is paid off, take the same amount each month and apply it to the next highest card and so on down the line.

Good luck!

Love
Loving
Print the post Back To Top
No. of Recommendations: 0
I have three credit cards to pay off, what's better: concentrate on one to pay larger amount on the one that have higher interest rates, and others smaller, or make all the equally payment?

It depends on what is meant by "better".

Loving gave you the reply for paying the minimum amount of interest over the course of the repayment, and if you stick with it you will have all the cards paid off soonest.

If you want milestones the soonest to help encourage you to continue paying off the cards, you can pay as much as you can to the smallest balance while paying the minimum on the other two cards. It may take longer to pay off the cards, but the elation of getting one card paid off serves as encouragement to stick with the plan to get the next card paid off.

Both these strategies are described in the "Credit Card FAQ" (hot link on the page when reading messages in this bulletin board).

(If you want the cards paid off the soonest and get emotional reinforcement, make a paper chain and label the links $1, $1,000, $2,000, $3,000, and so on for every $1,000 of debt. Follow Loving's advice of paying as much as you can to the highest interest card and minimum to the other two. Then as the total balance of all three cards gets below a link in the chain, break that link! By the time you break the $1,000 link you won't be able to wait to break that last $1 link! No, the idea is not original with me--someone else suggested the paper chain and I thought it sounded like a great idea.)


Print the post Back To Top
No. of Recommendations: 0
thank for the suggestion, I will try to roll all in one, otherwise I wlll continue on bigger payment on one then to move on to another when paidoff

again thanks, lovingrose
Print the post Back To Top
No. of Recommendations: 0
i've heard it's better to work on the highest % card with as much as you can.make the minimum payments on the others at the same time.

I'm a new fool. Hi
Print the post Back To Top
No. of Recommendations: 0
i've heard it's better to work on the highest % card with as much as you can.make the minimum payments on the others at the same time.

I'm a new fool. Hi


Hi gm6279!

That's true. This method is the one that works best financially, as it's that card that's costing the most. Some people do like to "snowball" by paying off the smallest balances first, and eliminating the cards that way as it gives a feeling of accomplishment. Everyone has to find what works best for them, and best fits the individual's comfort level.

Anyway, welcome to the board, and congratulations for being a new Fool!

Tony
...but I still am...

Off2Aruba
Print the post Back To Top
Advertisement