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Money, Business and Finance >> paying off credit debt
| 3/7/12 2:50 PM | |
MikeFL152
24 
Member Since: 4/27/03 Posts: 621 |
Ok guys, here's the deal. I have a CC with a limit of $5000 that I've paid down to a $500 balance. I have another line of credit with a limit of $4000 that has a balance of 2400. I've been paying things off one by one until now, but would it be better to pay off the cc completely and then work on the other, or leave the cc around %10 and start paying the other right away? This is my only debt besides my car note. |
| 3/9/12 1:59 PM | |
cagepedia
Member Since: 10/8/07 Posts: 302 |
payoff the one with the higher interest rate |
| 3/10/12 1:38 AM | |
|
cdmontgo
9
Member Since: 7/30/06 Posts: 7088 |
Do you realize the credit limit does not mean you owe that much? |
| 3/10/12 10:01 PM | |
|
HEMAN
7
Member Since: 1/1/01 Posts: 17349 |
Logically? Pay more money on the higher interest card. Psychologically? Pay off the lower cost card. Then it seems like an achievement. And may make you put more money into the final card. |
| 3/12/12 2:50 PM | |
|
MikeFL152
24
Member Since: 4/27/03 Posts: 624 |
thanks for the advice guys, the cc is through my credit union, so it isnt terribly high, but i'm gonna knock it out anyway. If only i could pay off my car before i find a new one i like. |
| 3/13/12 8:46 AM | |
|
MikeFL152
24
Member Since: 4/27/03 Posts: 625 |
Wes_Mantooth -MikeFL152 - thanks for the advice guys, the cc is through my credit union, so it isnt terribly high, but i'm gonna knock it out anyway. If only i could pay off my car before i find a new one i like. yup. made some big changes, one of them being trading my car + truck for the vehicle I have now, 2010 FJ Cruiser 4x4. drives over mountains and hauls groceries nicely. |
| 3/13/12 6:11 PM | |
|
HEMAN
7
Member Since: 1/1/01 Posts: 17354 |
Try to keep it for an additional 6 years. I know it's hard to do but no car payments will be your motivational factor. |
| 3/15/12 11:49 PM | |
Gojira
Member Since: 1/4/12 Posts: 7 |
How long will it take you to pay off the card with the $500 balance? If that card has the lower interest rate by a large margin and you can pay it off with in 3 or 4 months then pay it off first and then start on the higher interest rate $2400 balance card. If its longer than that then pay the the monthly minimum on the lower interest $500 balance card and put all the rest of your money to the higher interest 2400 balance card. And most definitely do not buy a new vehicle. Like some else said, take care of it and drive it until the wheels fall off. Car payments are evil. Plus a newer car with have a higher insurance rate. |
| 3/20/12 12:54 PM | |
|
MikeFL152
24
Member Since: 4/27/03 Posts: 628 |
cc w/ 500 has highest rate, i can pay it off within a few months without affecting my budget. I've got 6 months to pay these off. (i'll be moving to Cali, so want to be able to pocket as much as i can) I've already got the 2400 down to an even 2k. |
| 3/21/12 3:55 AM | |
|
Gojira
Member Since: 1/4/12 Posts: 16 |
Pay the minimums on the other and pay everything you got to the 500. Then snowball you payments to the 2k. Are you in Florida now? |
| 3/21/12 8:09 AM | |
|
LiveWire
31
Member Since: 11/15/04 Posts: 14349 |
I'd pay off the remaining $500 and move on. |
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