Let's say you have 3 credit cards and $1200

and you want to pay down some credit card debt...

cc 1 has balance of $400
cc 2 has balance of $800
cc 3 has balance of $2000

with that $1200, would you pay off cc 1&2, or would you put the entire amount toward cc 3?

Re: Let's say you have 3 credit cards and $1200

If they are alll interest free, I would pay down the 2000 one.

Re: Let's say you have 3 credit cards and $1200

I would pay off 1 & 2 ... 1 card with a balance would be easier for me to handle. (whether that's the correct answer or not, i have no idea...but that's what I personally would do!)

Re: Let's say you have 3 credit cards and $1200

there are 2 ways to handle it

pay the card with the highest interest

or pay the cards off with the smallest balance

then put all the money you were paying towards the smaller 2- to the largest one- it's called a debt snowball

Re: Let's say you have 3 credit cards and $1200

Re: Let's say you have 3 credit cards and $1200

pay off 1 & 2

get rid of ANY credit card debt while you can... then you can make bigger payments towards the third

Re: Let's say you have 3 credit cards and $1200

I would pay the two smaller cards off first - get them out of the way and you'll feel a sense of accomplishment writing out the final payment. Then focus on the last card.

Good luck!

Re: Let's say you have 3 credit cards and $1200

Re: Let's say you have 3 credit cards and $1200

Re: Let's say you have 3 credit cards and $1200

Message edited 5/17/2008 3:15:04 PM.

Re: Let's say you have 3 credit cards and $1200

pay highest interest first

Re: Let's say you have 3 credit cards and $1200

i agree, pay highest interest first in that order.

Re: Let's say you have 3 credit cards and $1200

Re: Let's say you have 3 credit cards and $1200

I'd pay off the 2 smaller balance ones and then start making bigger payments to the credit card with $2000 balance, this way, you are putting what you would pay towards the other 2 to the bigger card plus whatever you would pay that card..

Re: Let's say you have 3 credit cards and $1200

after reading dave ramsey total money makeover- I would pay off the two smaller cards. It will give you confidence , regardless of the interest rates. It feels great to pay off a card and it will give you incentive to pay off the 2k card even faster. pls one bill per month instead of three is better in my book

Re: Let's say you have 3 credit cards and $1200

Always pay off higher rate cards first, regardless of balance.

Re: Let's say you have 3 credit cards and $1200

I would pay down the highest interest rates first.

I also would not charge anything to a card with a balance.... becuase you accrue interest on your purchases on day 1. So, if you need cards to charge on, I'd pay off 1 &2... then use those for daily expenses, and then pay off the remaining card while avoiding additional purchases on that acct.

Message edited 5/17/2008 9:24:44 PM.