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Thread: Which credit card debt should I start paying first?

  1. #1
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    Which credit card debt should I start paying first?

    Have $500 to pay one first and wanted to ask which one I should pay first

    The one that I owe $ 700 or $2900?


    Thanks a lot

  2. #2
    Platinum Member Jibralta's Avatar
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    Take your interest rate into account with the principal balance. Pay the one that will accrue the most interest first.

  3. #3
    Platinum Member mustlovedogs's Avatar
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    So to expand on what Jibralta said - don't pay the one that merely has the highest percent rate. Take each cards percentage, divide it by 12, and multiply by your balance. Pay the one that is the higher number.

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    Originally Posted by Jibralta
    Take your interest rate into account with the principal balance. Pay the one that will accrue the most interest first.
    Ok that's what I will do, the highest one has 24.99% interest rate and the lowest one has 7.24% interest rate. So I will work to bring down that high debt. Thanks

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  6. #5
    Platinum Member mustlovedogs's Avatar
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    Oh wow that is really high. It may be worth not using that card much if you can't pay it off every month

  7. #6
    Platinum Member notalady's Avatar
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    Originally Posted by mustlovedogs
    Oh wow that is really high. It may be worth not using that card much if you can't pay it off every month
    Indeed, pay the higher interest rate ones first.

    I don't know about where you are OP, but where I am, credit card companies offer balance transfers for 0% or really low interest rate for a period of 6-18 months if you get a new card with them (or sometimes even existing cards offer this kind of promotions), I would take advantage of those and pay it all off in the nil / low interest rate period.

  8. #7
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    Originally Posted by mustlovedogs
    Oh wow that is really high. It may be worth not using that card much if you can't pay it off every month
    That card has been frozen since November and won't be used until the debt is completely gone lol

  9. #8
    Platinum Member mustlovedogs's Avatar
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    Originally Posted by sd95
    That card has been frozen since November and won't be used until the debt is completely gone lol
    Good call! My highest card is a "student" card and I think it's 17%...

    Be wary of closing it as it can hurt your credit score. If it's your oldest it will drop your score.

  10. #9
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    Originally Posted by notalady
    Indeed, pay the higher interest rate ones first.

    I don't know about where you are OP, but where I am, credit card companies offer balance transfers for 0% or really low interest rate for a period of 6-18 months if you get a new card with them (or sometimes even existing cards offer this kind of promotions), I would take advantage of those and pay it all off in the nil / low interest rate period.
    I tried to do that but I wasn't approved. I think it was capital one

  11. #10
    Platinum Member notalady's Avatar
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    Which credit card debt should I start paying first?

    Originally Posted by sd95
    I tried to do that but I wasn't approved. I think it was capital one
    Can you transfer balance from your 24.99% card to your 7.24% card?

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