Order of paying off credit cards.

[Juan123]

In the situation i'm currently in im not able to PIF all my credit cards. so my question is, in what order do you guys normally pay off your cards if you can't pay them all off at once?

My 4 cards hold currently; 2 @ 14.99%, 1 @ 15.99% and 1 @ 16.99%

None have annual fee's... what would you suggest i do? Pay them off highest APR first, Highest balance first? lowest balance first?!?

Thanks.

[Anonymous]

Everything I've read (and if you do the math, it makes sense) is to pay off the highest interest debt first.  Make minimum payments on lower interest debt (your 14.99 APR and 15.99 APR) cards while paying as much as you can toward your highest debt.  Once you pay off your CC w/ 16.99APR, take money you were payting to that and apply to the 15.99APR card along with the minimum payment you were making.  When that's paid off, then goe to your 14.99APR card with thehighest balance.

Some will say to pay off your lowest balance first but that's more for psychological factors.  You'll pay more down the road to keep paying on a higher interest card so paying on higher interest cards first will be the more affordable option down the road.

[ficonightmare]

It depends. If you're doing it for scoring purposes, pay off the ones you can get to zero first. For financial reasons, I'd go with the highest interest card.

[Juan123]

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@ficonightmare wrote:

It depends. If you're doing it for scoring purposes, pay off the ones you can get to zero first. For financial reasons, I'd go with the highest interest card.

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definitely for scoring purposes

[ChesterPDexter]

Those rates are not very different from each other.  Assuming you don't owe huge balances (like $10K or more on each), I'd pay off the smaller ones first just so you can have fewer outstanding balances.  I think it will make you look good.  I've been doing the same thing.

[dharalex]

In the case of scoring purposes, depending on your balances and how much you can pay at one time, I would get each to under 10% utilization, then pay off lowest to highest. That way you take care of utilization and number of cards with balances at the same time.

[Anonymous]

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@Juan123 wrote:

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@ficonightmare wrote:

It depends. If you're doing it for scoring purposes, pay off the ones you can get to zero first. For financial reasons, I'd go with the highest interest card.

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definitely for scoring purposes

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+1 to what ficonightmare wrote, for scoring purposes.

[Juan123]

they aren't very high balances. total of $2000 between the 4. but with christmas here... birthdays coming up, dont have the extra cash to spare to pay them all down >_<

but i'll definitely pay the smallest one down first, thanks for the advice!

[mAndrew1980]

Hmmmm, interesting thread. I'll be faced with a similar situation soon. Probably have $2150 balance out of a total of $3000 available credit with three cards.

$1250 balance on a $2000CL card with 23% APR.

$475 balance on a $500CL card with 0% APR.

$425 balance on a $500CL card with 24% APR.

In January I'll be paying $600 toward my $1250 balance and from then on every two weeks I'll pay $50-$75 on each card until it's gone. By summer I'll be fine and ready to app again.

[quest208]

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@Juan123 wrote:

they aren't very high balances. total of $2000 between the 4. but with christmas here... birthdays coming up, dont have the extra cash to spare to pay them all down >_<

but i'll definitely pay the smallest one down first, thanks for the advice!

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i am not one to force my views on anyone nor should you take this the wrong way.  but, how about spending less during the holidays?   i have some home improvements that my wife and i have to do asap, and until everything is done, we've cut down on the spending.  by new years all will be forgetten and you'd be paying down your cards.

and the rest of the advice in this thread looks great, im new here too and always value the other member opinions.

spend less, spend wisely and all will be well.

good luck and happy holidays......and good luck getting those gifts!!! LOL