[USER]

Which would you pay off first? A credit card with 13k with interest or a 24 month interest free card that has 5k?

I have two debts: one is $13,000 with interest, and the other is $5,000 interest-free.

I’m trying to decide which one to pay off first. Should I focus on reducing the larger debt with interest to minimize long-term costs, or clear the smaller, interest-free debt for quick financial relief?

What factors should I consider when making this decision?

[Dave]

Why would you pay of interest free card at all?

[Jeremy]

Pay off the 13k or try to transfer the 13k debt to the other card in you can increase your credit line.

[Lauren]

The one with interest. AND do not charge anything to the zero percent card. If you do, the new purchases will generally be charged a high interest rate and any payments you do make will be applied first to the zero percent promotion balance.

Keep an eye on the 24 month expiration date so you can plan accordingly if you are not able to pay the $5k off by then.

[Ralph]

Math says to pay off the card with interest and only the minimum on the lower balance.

Dave Ramsey says pay of the smallest balance first and snow ball that money along with whatever extra you have into the next largest bills.

While you do lose some money that way, the emotional and thought process is that you see the snowball process work and you see debts being eliminated which causes the mind to be happy and work harder to get rid of the debt since you know it can be done.

[Melissa]

Agreeing that I would tackle the one with interest first, but scour the terms of the interest-free one and be very sure you aren’t penalized if you don’t pay the balance off before the interest-free period ends.

[Scott]

Pretty sure you are asking about the snowball method. If you have a chronic debt problem and you need motivation to get rid of your debt. Then pay off the 5k one first.

If you have found religion and you have changed your debt mentality.

Then pay off the high interest one first.

[Eryn]

Pay as much as you can on the one that is charging you interest right now. Pretend it’s a bleeding wound.

Stop the bleeding.

Minimum payments on the one with no interest until either the zero interest period is up or you’re prepared to pay it off in full.

[John]

Percentages can either help you or hurt you. Your question really is a no brainer

[David]

Debt snowball says do the lowest one first. Then crash the next highest debt.

It’s not logical because you’re going to pay a bit more in interest (maybe). Rather, it’s a psychological win – we need to see progress to stay motivated.

Don’t shoot the messenger – this technique has worked for many.

[Milas]

You do you homie, don’t let anyone else tell you what to do with your money (well technically the banks money, but I ain’t countin or judgin)

[Jennifer]

Pay off what you can on the 13k then transfer the remaining to an interest free card and tackle that after the 24 month interest free debt.

[Author]

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