03-29-2013 01:15 PM
03-29-2013 01:21 PM
The rule of thumb is to pay off the highest APR cards first.
Others like to pay from lowest balance to highest balance, so cards are paid off quicker.
03-29-2013 01:23 PM
03-29-2013 01:23 PM
So, I have 14,500 in credit and I owe 4500. I want to pay them off so what should I do. I owe $300 on store cards. But, I owe chase 3000 and citi 1200. Help me with a plan of action. I have about 1000 to pay on cc per month
Are you using these cards for any new charges, or do you have others CC for that? What are APR's for each?
03-29-2013 01:32 PM
03-29-2013 01:34 PM
pay off highest APR card first, then pay off the lower ones after that.
If you are unable to pay it off completely within next 2-3 months, get a personal loan for the amount on cards that you owe that are charging you interests fees, and use that money to pay off the credit card loans. Reason being personal loans interest rates are much lower than credit card interest fees.
03-29-2013 01:57 PM - edited 03-29-2013 02:09 PM
If your citi card is still within the 18 mo 0 apr period then I would pay off the store cards first (since their apr is usually 20+), pay min amount on citi, rest on chase. Minimum on citi and rest on chase for the next couple months until you pay off chase. Finish paying citi balance.
EDIT: oops ignore the 18 mo bit...but still pay off the store card first, then chase, then citi or try to do a BT from chase to citi (still paying off the store card first)?
03-29-2013 02:02 PM
Here's the simple rule about paying CC debt:
1. Pay all the minima first of all
2. If there's money left over from step 1, pay the balance with the highest interest rate
3. If there's money left over from step 2, pay the balance with the next highest interest rate
4. If there's money left over from step 3, pay the balance with the next highest interest rate
5. If there's money left over from step 4, etc.
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