No. of Recommendations: 0
Hello Fools,

I'm new over on the Green Light boards and they recommended that I bring my CC debt questions here.

First off, with no excuses, I'm currently deep, DEEP in debt, my fault, no one to blame but myself. The good news is, that I've decided that this thing has reached the high water mark. I no longer use credit cards (my subscription to Green Light was actually my last use), and my current pending charges are $0 for the first time in a long time.

I had two cards that were nearly maxed out.

Card "A" has a 16.83% fixed interest rate (and they will NOT budge on that, I've tried to get a lower % and they just won't do it).

Card "B" has a 5.99% fixed rate on a balance transfer from card "A". This 5.99% is for the life of the balance so long as I do not default. However, card "B" also has a 14% fixed rate on additional purchases made after the BT and my wife used this card over Christmas.

Enter card "C". This one I obtained solely to transfer the balance from card "A" in an attempt to bring it down to something more manageable. Card "C" has 0% interest for 11-months, after which the fixed rate will be 3.99% until January 2011 (barring default on my part that is.) One problem here is that "C" has only given me about 1/4 of the credit needed to fully transfer the balance owed on card "A", but that is something I'll have to work around. (at least a chunk of the debt is out of the 16.83% APR)

Now, once all the dust settles for this latest BT I'm wondering the most effective way to tackle this debt head on. I've gotten some advice over on Green Light to go after the highest interest rate first, which would be card "A".

However, I've also heard that I should possibly pay off the smallest amount first, which would be card "C".

I'm kind of favoring the highest interest rate first, as I believe that would save the most in the long run, but I'm wondering what the Fools could tell the fool to make him more Foolish.

-stray-
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