@Anonymous wrote:
I am sitting here racking my brain trying to devise a plan. I am not sure if I should start agressively tackling these bloody loans (i.e. Loan Me and One Main Financial) or if I should start with my higher interest cards such as Amazon Store Card or my Chase Sapphire... Thoughts? Thanks so much!
There are two strategies frequently used:
1) Financial. Use all available money, after paying the minimums, on the highest APR balance. This miniimizes the total interest cost
2) Pay off the lowest balances first. This allows you to see demonstrable progess, you used to owe money on say 6 things, now you only owe on 5. By reduucing the number of accounts with balances, you might also improve your score some. But this costs more than approach 1.
Then here, you may also see approaches based on score: reducing the overall utilization, reducing max utilization, and number of accounts with balances etc.
It depends on your sitatution, but if you owe a lot, and don't really expect to be apping (for a new low APR card or consolidation loan), I would tend to ignore score and focus on 1 or 2.
