[USER]

Due to a major change up in life due to an ex relationship, i am starting over at 45 with nothing but my stuff.. My car and my dog..

Unfortunately I accrued credit card debt this last year while job hunting and making life changes.

I was fortunate to always pay mininmum payments and never missed one thanks to my side hustle so my credit never took a hit.

I am working now and luckily for the next 2 months(thanks to a friend) I only have 3 other small bills I am responsible for.

So I want these credit card debts gone or at least smaller before I start having regular bills again.

Is it better to pay off the highest amount with the largest monthly payment first or pay a few smaller ones off completely and then throw the extra from those at the largest amount… All have pretty much the same interest rate except for the 3 noted..

Here’s a breakdown of what’s owed and I will have about 400 a week to use for these bills plus anything extra from side hustle or overtime I will add to it.

Credit cards
1. 2500 owed 70 minimum pymt
2. 700 owed 35 minimum pymt
3. 400 owed 30 minimum pymt
4. 700 owed 30 minimum pymt
5. 85 owed 30 mimimum pymt
6. 300 owed 30 minimum pymt (low interest)
7. 200 owed 30 minimum pymt (low interest)
8. 300 owed 30 minimum pymt (no interest 6mths)

[Destiny]

3, 5, 6, 7, and 8 could be paid off in 1 month by paying off the $400 one week, $200 + $85 another week and the $300 ones the other 2 weeks that month.

On the weeks you have money leftover ($400-$285 leaves you with $115), use that towards another card.

The next month use those 4 checks to pay off the $700 cards and that would leave you with just the $2500 card.

Granted it’s higher monthly, but depending on what your bills look like when you move into your own place, you could pay more than the minimum (if able) to pay it off sooner.

Or, look into a low interest personal loan to pay that card off if the interest/monthly payments would be better than the card’s interest/monthly payment.

[Lenora]

I think it is so satisfying to check a debt off your list! Pay off those 4 small ones and your list will be reduced by half (not the dollar amount, it’ll go from 8 debts to 4). Best wishes

[Virginia]

Wipe out the smallest balance and keep the card open as long as there’s no annual fee. 30 days after you pay it off, call to see if they’ll offer a 0% apr term.

Roll high interest debt to 0% interest offers (as long as the fee isn’t more than 3 or 4 %) and keep paying off the lowest balance.

Keep the cards open as long as there’s no annual fee.

It will help your score, which will give you access to better cards, welcome bonuses. Etc

[Julia]

Call them and see if you can negotiate lower rate, pay off amount, or low loan rate to pay others.

[Theresa]

Highest interest 1st. I would just pay off the $85, to get that out of the way. You got this. I did this too, but with 3 kids and I had no credit cards.

Started with refund, donated money from work family and a paycheck.

When you do get your own place, hit up thrift stores for tables, lamps, dishes and such.

I would only buy a matress/ box spring and sofa/chair new, due to bedbugs. Good luck to you and your got this.

[Mona]

Pay off 5,6,7,8 and make payments on all others, use money the following month for as many others you can pay off in full.

Do the same the following months.

Within four months, you will have no credit card bills.

[Diane]

First off STOP charging ANYthing and pay cash for everything as long as you owe any of these. Eat Rice & Beans, Sell Plasma or wait tables nights & weekends till you get ALL this off your back.

You can knock most of this out fairly quick. Pay something on them EVERY time you get paid. No need to wait til the due date.

Pay 5, 3, & 7 First then throw the money you’ve been paying those with at 8 (before your 6 months run out) & then do the same with 2, 6, 4 & 1.

NEVER charge anything you can’t pay off BEFORE the due date.

If you would not pawn your TV for it, live without it.

[Shirley]

Call each company and ask for an interest rate reduction. I did this years ago and they were very agreeable.

Also, transfer your balances to a card that has an introductory zero interest rate for a period of time.

Also, to a card that does not have an annual fee if any of your cards have one.

These are ways to reduce your overall payback amount.

[Stephanie]

I would do the lowest balance one first and work my way up to the most expensive one because it will feel more encouraging.

[Elizabeth]

First, if you have a credit union, see if you can convert this to one loan with a low monthly payment. If that’s not an option. Snowballing has been a good option for me.

If you want to research it, just be sure to type in snowballing credit card debt, or snowballing debt.

If you look up snowballing on its own, one of its meanings are very different and won’t help this situation right now

Best of luck! You will get to where you need to be.

[Mary]

of course you have to make allll the minimum payments 1st!!! then you could pay offf the smallest debt – the 85 $$ debt. whew!! aren’t you glad you can get rid of that one so easily?

then you should choose one of the other higher interest rate debts to pay off – maybe get rid of the 400 $ one asap, and then get reallly serious abt making extra payments on that big 2500 $$ one.

interest doesn’t sleep – so you want to get out of debt ASAP. best of luck to you!

[Natalie]

I’d pay the $85. off right away & a little towards all the others this month. That will give you a feeling of accomplishment this month.

The next month pay off the next lowest & divide the rest against your other cards.

This gives you a sense of accomplishment each month & puts the $ you’d pay on the lower cards towards your other cards. Good luck

[Lydia]

Pay smaller ones off first then leave the highest for last. But, while paying them off try to put some in savings… even if it’s a small amount.

If you don’t have a Money Market Acct.. look into one.

Better than regular checking/saving because you earn more interest on your monies & therefore your savings can add up quicker.
Do you have IRA acct?

Look into that too.
These will all help you save even while paying off debts.

Good luck.

[Beki]

I would pay off #5, 6, 7, 8 right away! You are down to 4 payments a month then and it will feel so good to have less bills!

Then tackle the highest interest rate next. You got this!

[Monica]

Pay the 85 first then the 200 you may need to get a side job like Uber eats or Walmart delivery then you target the 300s and so on, but paying the 85 first you would have 30 extra dollars to put to the 200

[Patty]

Please do yourself a big favor. While you are aggressively paying off the cards, smallest to largest. Also start a savings emergency fund to cover your known expenses and any unforeseen emergencies like a car repair.

An emergency situation could really set you back if you couldn’t pay cash and needed to use a credit card.

Yes, it could make paying off the cards take a bit longer, but covering your back is the better and stronger position.

Long term, a healthy savings account can l keep you out of credit debt allowing you to pay up front for needed expenses.

Eventually, you might pay cash for your next great condition used car and build a nest egg for a healthy down payment on a home.

Be very certain that you marry a partner who also practices healthy budgeting.

Find out their financial health and spending/ saving philosophy well before you become emotionally entangled.

If they are not budget healthy, move on. Remember, it’s not the size of their income, but what they do with it!

[Anne]

Depends on which works better for you? To save the most money knock them out in order of highest interest rate to lowest.

If you need the mental boost of seeing the number of payments disappear faster in order to stay the course pay them in order of smallest debt to largest.

I mentally have to do highest interest first as I can’t fathom paying more than I need to in the long run, but everyone keeps their motivation going differently.

[Renee]

I would snowball these. Except for the 0% one where you should make minimum payments while focusing on higher interest debt.

Snowballing involves paying the minimum on all but the lowest balance card, putting as much as you can toward paying it down.

When it is paid off, move to the next lowest balance.5 is very low hanging fruit – pay it off first.

Then the next lowest balance, and so on.

Be wary of closing accounts as it will alter your utilization ratios and thus your credit score. Just tuck them away and don’t use them!

The older an account is, the more important it is not to close it as doing so will lower your average account age which negatively impacts your credit score.

[Johnson]

Snowball method
Pay smaller ones first
Add the payments to the 400 you have to throw each month
With 5 & 6 gone

You start the next month with 460
The next month you’ll have 490
You can clear this up fast

[Kara]

Pay off the one with highest interest rate and largest amount first.

You can even do an amortization of each loan and it’ll show you what you end up paying in interest each day

[Author]

Posts