[Shantell]

..Looking for insight.. I had to accrue some credit card debt to get me and my small child out of an abusive situation, and get us started in a new place until I was able to find work and pay for things on my own again. *Worth it*

I dont care about your opinions on that decision to use credit.

But the interest rates and monthly payments are killing me now. I have been given an opportunity to not have any rent or utilities to pay for 6 months so I can pay off as much of that debt as I can.

I’m somewhere in the ballpark of $13,500 acrossed 3 cards.

They all have a similar interest rate within a few decimal points so thats not a deciding factor to me. I am not interested in opening up any more lines of credit to do balance transfers I just want to tackle whats in front of me.

Whats the best way to pay this down every month? I will have about $2000 a month to put towards them. The cards are roughly $7k, $4k, $2.5k

1: Pay off the smallest card first and work my way up while just making the minimum payments on the bigger ones.

2: Pay off the biggest card first and work my way down while making minimum payments on the smaller ones.

3: Make chunks of payments towards all so theyre all going down, and if so how would I figure out how much extra to put towards each to make the biggest dent the quickest.

Thank you for your help!

[Brenda]

I’d go with paying the smallest first. As soon as it’s paid off, add that amount to the next. Then throw all the money at the biggest.

You’ll see the accomplishment much faster and that definitely helps with mental aspect of the challenge.

No need to apologize for keeping yourself and kids safe.

You’ve got this!!

[Shelley]

I suggest number 1. Pay the minimum on all cards and put the rest on the smallest balance. It shows you progress right away and keeps you motivated to tackle the rest.

Ps. It’s totslly worth every penny in interest and worth the struggle!

I’m proud of you for tsking that big step!
You got this!!

[Gail]

Since they all have similar interest rates you are essentially paying one loan in three payments each month. For that reason you would want to go with your option three.

The way you figure out how to figure out how much of your $2000 to put towards each balance is to figure out what proportion each one is of the whole.

In yourcase, as you said, you have about $13,500 to knock out.

You would divide each loan balance amount into $13,500 (example: $7000 divided by $13,500 equals 52%) That result is the percentage that you apply to the $2000 that you have available each month

So, it will look like this:
$7000 divided by $13,500 equals 52%. This means 52% of your $2000 would go towards that bill.

The amount you would pay towards it each month is $1040

$4000 divided by $13,500 equals 30%. The amount you would pay towards this bill each month would be $600.

$2500 divided by $13,500 equals 18%. The amount you would pay towards this bill each month would be $360.

Those three amounts will equal $2000
Often people will suggest paying off the smallest bill first, but mathematically you won’t progress as quickly that way.

The reason behind that advice is that it helps people have a small victory and encourages them to continue their work.

However, I can tell by your post that you are already encouraged and highly determined, and your questions indicate that you can understand this reasoning.

Your third approach is the best approach and this is mathematically the best way to get the most bang for your) 2,000 bucks a month.
Very best to you and your child.

I’m sorry you had to go through what you did; but I assure you, despite that, you will come out the other side wiser and stronger

[Char]

I would look for a card that has the longest payoff at zero percent, transfer your amount from your card to the zero percent card.

Pay it off in full before the zero percent time runs out.

I did that years ago, sure lifted a burden from me

[Jo]

Girl I left a 12 yr abusive marriage some 20 yrs ago raised my two daughters had a “ good” job w the state etc type1 dm and now retired! Still broke but know you did the right things!

Always do what’s right for you and that child! Society doesn’t realize how DV breaks us in spirit and in our pocketbook!

I had a good job so I got no free stuff like some get… housing ebt etc and I did wo child support when I first left for 8 months! Lawyers and law enforcement and judges don’t get it even now!

We try to educate etc but it’s still you putting one foot in front of the other and your and your child’s safety is all on you.

I know it’s harsh but I risked kidnapping and went to neighboring state for just a wee bit just to get out of the way and he didn’t know where we were?

Your local DV shelter can be of much practical help and emotional health.

In 1997 there were no books in local library on DV. Now there are. When you get settled some more and have time to breathe learn and let yourself heal.

I remember crying over what bill to pay next and it took years! But as I say my superpower is weaving straw to spin gold! And remember you are “ alive to survive” (that was part of my speech on Alabamas capital steps on year! And just remember sadly some don’t get out alive at all!

Or they are so beat down that cannot function well now. I’m so thankful for my intuition my blessings and my help ….

I took it when it came. Lots lots of hard hard physical and heart work it takes to get out, not to mention the MONEY it takes!you keep on keeping on you are doing great!

[Connie]

Pay off the lowest first.. I highly recommend balance transfers for the other two on two cards if you can get them for 12, 15, or 18 months.

Then, you can certainly pay 2grand a month and get most of the balances paid off… but you’ll have an extended period of free interest if you need to take longer to pay them off .

[Jewel]

If you’re following by the advice given by Dave Ramsey, choice 1.
Me personally, choice 4: Pay down the one with the highest interest rate first (making minimum payments on the others at the same time).

[Lenora]

#1 for sure! It will give you such motivation when you see that smallest debt GONE. And you can then divert those payments for your next smallest.

The joy when you have only one left will be tremendous

[Ashley]

Smallest balance first and do not be afraid to negotiate with the credit card companies on the rates and even balances.

Ask what they would accept as once you get the smallest one paid off call the others and negotiate your payment history will show them you are serous about paying off your debts and they will be more willing to lower those pay off amounts.

[Nanci]

I know you don’t want to open new credit lines, but we did zero interest transfers, and paid off two big ones. No interest for 18 months saved a ton, and paid it down so much faster.

Just do not miss a payment! The interest goes back on, and at a higher rate.

[Monica]

Make your minimum payments for all each month. Get on a tight budget and find as much money as possible to pay them off. You will need to decide which method works best for you.

Some people like to see traction by one loan going away in order to realize progress is being made. If you’re this type of person, then pay the smallest debt off first, then working on the next smallest one.

If you are the type of person that doesn’t need this and knows that progress is being made regardless of not seeing one eliminated right away, then I would pay off your credit card with the highest interest rate, because that would save you more.

Good luck and it sounds like you have a wonderful opportunity to get these all paid off.

[Allison]

Paying off the CC with the smallest amount owed will help you feel like you are accomplishing something faster.

Paying off the highest interest rate credit cards first will save you more money in the long run.

Biggest hugs to you and your daughter.

[Lauren]

Pay off the one with the best balance transfer offer first, then transfer the balance of one or both to it.. 3% fee is less than compounded interest as long as you def pay it off in the promotional period offered.

[Peggy]

It depends on you and your personality. The best way from a $ perspective is to pay the minimum on the 2 cards with the lowest interest rates and put the rest towards the highest interest rate card until it disappears and then attack the highest interest rate card next.

But some people struggle mentally with staying on that path and need to see a $0 bill to stay focused.

So, if it would help you stick to the plan by feeling accomplished, pay the minimums on the highest balance cards and pay the rest to the lowest balance card.

That way, it gets paid off in probably 2 cycles and you can feel like you’re making progress.

And good for you for getting out of that situation. It takes a long time to recover both mentally and financially, but it will be worth it for your child.

At least this was my experience.

[Christie]

I’m glad you did what you needed to do to get out of that situation!! Don’t let anyone make you feel judged for using credit cards to do what you needed to do.

Good luck to you

[Alyssa]

Even if the interest rates are close, paying off the one with the slightly higher rate first and the one with the slightly lowest rate last will still save you the most money, mathematically.

That is the route I would take.

Congratulations on escaping the abusive situation.

[Ella]

Just 1/3 each until smallest is paid. Then half & half. Then all on last one. Variances look small enough that won’t matter & you’re so lucky they’ll be paid off so soon.

There will be such a small amout left at the end of 6 months that you will be able to squeeze that finished whichever card it is.

You are so fortunate to have your rent & utilities taken care of for 6 months. What a blessing. Good for you.

[Christie]

I’d go with option #1 because when I paid off my cards it felt great to get to the “finish line” on each card and you’ll feel that success faster by paying from smallest to largest

[Carlene]

I’m glad you and your child is safe. I would recommend if you have no savings to fall back on is to open up a savings account at a bank and at least have 500.00-1000.00 kept in it for emergency purposes while your working on paying off your debt.

Doing the snowball by paying off smallest is a great way to start it will continue to give you the motivation and feeling of great accomplishment when each card is paid off.

Another thing you could look into is getting a bank loan of the amount of your 3 card with one lower interest rate and one payment.

Make the payment on time and put the rest of the money allotted on the loan.

Whatever decision you make keep plugging away at your debt. You got this!

[Lynn]

If you don’t want another card to do a balance transfer with 0% interest for all three cards, then I would pay the most money towards the highest balance.

That will save you the most money in the long run.

[Linda]

Pay the one with the highest interest rate first. All things being equal, pay the smallest off first, unless the larger incurs a higher rate because it is so higher.

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