[Marc]

I have a question that I keep tossing around. I got about $500 saved up from a side job. I have 2 credit cards in mind that I want to pay off, but will only have enough to pay off 1 of them.

Card 1: $455 with a 0% interest for 2 more months. This will save me $40 a month to pay towards the other debts I have.

Card 2: $466 with a 28% interest rate.

This will save me $20 a month to pay towards the other debts I have.

My thought was that I would pay off one of the cards and use the monthly payment to help snowball down the debt of the other card I still owe on. But where I can’t decide is which one to pay off first.

[Jodi]

Card 2 always get rid of high interest first

[Krista]

Most 0 interest cards charge the full interest on the full original amount after the 0 interest period ends. What will the interest rate jump to.

How much was the original balance.

Pay off the 0 interest card and make that extra 40 a month on the other.

Transfer the high interest balance to a 0 interest balance transfer and pay it off within the promo period

[Shirley]

You need to pay off the 0% interest card because in 2 months the full interest will accrue and will be a lot more than the $500 you have.

Then load up on paying off the 2nd card with 28% interest.

[Jordanna]

Are you going to be able to pay off card one in the next two months? If not what does that interest rate go to?

[Sherry]

I would pay Card 2 with the 28% interest rate but make sure you are making sure you are paying Card 1 monthly payment though otherwise they will tack on the interest rate at the end.

[Cherie]

Does card one drop all the interest accrued from the ‘no interest’ time frame if you don’t pay it off by date when interest starts.

I know this used to be common. I don’t know if it still is.

If it is the case, then pay off the zero interest one first.

If not and the interest just starts from the date the zero percentage stops…then pay the higher interest one first.

And snowball the other amount into that one.

[Natalie]

Pay off card 1, use the left over $45.00 plus $40.00 you would normally pay to card 1 and apply that $85.00 to card 2.

Then you’ll pay the $60.00 you’re paying on both cards to continue to pay card 2 off.

It’ll take 6 plus months but if you get any extra put it on the card.

Make it a rule not to pay interest on credit cards if you can find another way around it.

Snowball is very effective, high interest first minimum on others. good luck and you can do it.

[Michelle]

0% interest card or you truly will owe much much more

[Pam]

The first card – immediately- the 2 MONTHS is really only 1 MONTH AND THE FEW DAYS YOU ROLL INTO THE SECOND MONTH – A VERY EXPENSIVE. MISCONCEPTION- And the interest meter is probably running back to day one

P A Y. T O D A Y!!!
Then you will have what is left of the balance plus month2 to put towards your other card

Plus- you do not need to wait for your due date to pay.

YOU MUST PAY YOUR AGREED UPoN MONTHLY CONTRACTED AMOUNT but you can always pay ADDITIONAL PRINCIPAL anytime- it will really zip your balance down. But you MUST PUT ADDITIONAL PRINCIPAL on your seperate check.

Each and every time. Otherwise they can and will put it towards interest

This should give you. $145 (45 left from money you have to pay off other card. 40 that you w9nt be pay7ng 9n tha5 card to put towards other card.

Then another 40 – because you are payi ng NOW and wont have to use that for month 2)

Make that check payable additional principal towards card 2.
CAUTION- CALL THE CARD AND ASK PAY OFF BALANCE there may be a tiny bit more interest lurking in there – they do that!!

Don’t close it – it could hurt your credit rating however
Try not use it unless you can pay off each month

You got this girl!!!

[Barbara]

Card 1! You will cry when they throw all that interest at you in 2 months.

You will have $45 left-pay it to Card 2.

[Cassie]

You’ll save more than $20 in interest fees if you pay that one down first.

Hopefully you can make a big chunk down on the first one after that/ use leftover money to put towards it

[Shelley]

Od be concerned about back interest on the zero card, so I’d pay that one off.

Then look for another zero card to transfer the other balance to.

[Melissa]

Since the amounts are so close, pay off #2
Be aware the 0% for 2 more months interest will be big.

You have 2 months to get as close to $455.

That you can.

[Samantha]

When card 1 stops 0% what will the interest rate be and of you dont pay it off will it be charged all back interested? Or will you transfer.

I would pay off card 2 interest then transfer card 1 to card 2 on 2 months to keep lower interest with usually 1 time fee.

[Nancy]

I would pay of the 2nd one, that gives you 2 month’s for zero interest on the other, then double or triple your payment on that zero interest card, you should have it paid off in a few months

[Means]

Could you pay off the 0% then transfer the 28% to the 0% and would it buy you any time with having 0% with the new balance

Maybe wait a month or so to transfer

[Karyn]

Normally I would agree with paying off the higher interest rate. But because you specify that you only have that rate for 2 more months, I would probably pay off the one that will free you up more a month.

How much will the interest rate be after 2 months?

[Lisa]

Does the 0 interest card all of a sudden charge ALL the interest owed since day 1 if it is not paid off within 2 months?

If so, then pay that one off first.

The other card is not going to have a sudden increase in interest if you just keep paying on it monthly.

[Corie]

Look at the terms of your card with 0% or call the card and ask…not all 0% interest will back date the interest.

I have had several in my life that did not.

Once you know the answer to that then you will know the card that needs to go first.

[Nella]

LEARN FROM MY MISTAKE… The first card…. Definitely the first card!!! That back charge interest rate will boost that baby all the way up!

I had done exactly what you are about to do 10 years ago.

I forgot about the term ending of zero interest for furniture and when I realized it is when my balance went to $1600 instead of $300 it was.

[Author]

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