[Laken]

Balance transfer question!! I have a big credit card balance (16.5k)
I opened a 0% interest card and did a balance transfer of 1k (that’s the credit limit it has) and have been making good progress. Very happy with the system so far.

Normally, I would have a payment of $360 on the big credit card due this week. Bc of the balance transfer I do not owe a payment this month on that card.

I also do not owe a payment on the smaller card, as I have been tossing money at it here and there.

Question is, should I send the $360 to the big credit card that is collecting interest or to the smaller credit card so I can continue siphoning money off the big card.

Where is that $360 most useful?

[Sharon]

Can you pay it toward the no interest card, then transfer $360 from the interest card to the no interest one?

[Gwen]

Don’t borrow from Peter to pay Paul. Transferring balances doesn’t get the cards paid off. The 0% card is going to start charging interest at some point.

Pay that one off, and concentrate on paying as much toward the card with the large balance.

[Deborah]

I would put it on the card with the highest interest. Please check the fine print of your 0% card.

Sometimes you are on the hook for back interest payments if you miss a monthly payment or if it is not paid off by a specified date.

[Nancy]

If I had that much due on cards I’d contact the creditor, ask to cancel the account and work to pay it off! When you cancel the account it reduces interest.

If they won’t, I’d seek a loan.

Cut up all the cards, live on roman noodles till paid off!
BTW, the 0 interest card will charge back interest from day one if you don’t pay it off before 0 interest deal expires.

Have cards set to auto-pay “balance”.

[Shauna]

I’d put the extra in a savings account to build that up so you don’t have to use either of those credit cards again.

Make weekly payments to both cards…that’ll help reduce interest on the larger balance.

Make sure to get the smaller balance paid as soon as possible and repeat.

[Rachel]

Highest interest card. It will have a greater impact since every dollar over the interest brings down your balance and $ going towards interest each month making each subsequent payment more impactful.

[Francess]

pay down the card that is bearing interest or you ve saved yourself nothing. to accrue less interest you must pay your cards a week before your monthly closing date not the due date.

when you transfer to a zero interest card for ie 12 months you must pay your card off in full within the 11 months.

to save daily interest accrual on your mortgage you do the same. you pay your mortgage the day after your monthly accrual closes.

then you save by lowing the daily interest rates between date of closing and due date.

[Krista]

Yes, pay as much as you can on the high interest card and only minimum on 0%

[Sparkle]

I would pay in the high interest card UNLESS it would pay off the balance of a smaller card.

Then you could take the minimum payment on that bill and roll to the others.

[Corie]

Great question. I think I would put it on the big one (so long as you know you can get the other paid off before the 0% goes away) That will help save at least a little interest.

[Kayla]

Minimum to the 0% interest card that will have it paid off by the terms, everything else possible to the high interest card to ‘stop the bleed’ of owing more money due to interest

[Virginia]

Pay off the smallest debt as soon as possible, keep the card open and look for bigger balance transfer offers.

Weird, more accounts with no debt on them can boost your score, giving you access to better cards.

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