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Established Member
Von7
Posts: 29
Registered: ‎12-30-2007

How to pay CCs down with multiple APRs on 2 cards

Hello all.  I have 6 cards to pay down and not enough money to pay them all off.  I've learned from this site how to pay down credit cards by tackling the high APRs first.  But what do you do when you have two credit cards that have 2 different APRs?  How can you put them in order? 
I have a BofA CC with a balance of 5742.30 limit is 6000 (5,498.45 at 11.24% and 136.91 at 19.99%)

and a Care CC with a balance of 2,638.58 limit is 5500? (1,896.88 at 11.90% and 907.66 at 21.98%).

I've been trying to figure this out but decided to come to the experts.  Any help would be appreciated.

Established Contributor
Ulan
Posts: 790
Registered: ‎09-09-2008

Re: How to pay CCs down with multiple APRs on 2 cards

Nearly all credit cards that I know will apply your payments to balances with the lower APR first before they apply funds to your high APR debt. This means that a split payment won't help you much. Paying the Care Credit card first looks like your best option here, as you won't reach those $136.91 on your BofA CC anyway.
Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008

Re: How to pay CCs down with multiple APRs on 2 cards

Ulan is correct.  CCC's apply your payments to the "cheapest money" first, meaning to the lowest APR balance.

 

Ways to avoid this would be to BT the entire card balance into a single APR balance, if you have the ability to do so on another card.

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Established Member
Von7
Posts: 29
Registered: ‎12-30-2007

Re: How to pay CCs down with multiple APRs on 2 cards

I've got a lot of work ahead of me.  Thanks for your help guys!


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