I can say we survive the last year thanks to our credit cards but finally our situation is improving and now we are able pay way more than the minimum payments but sometimes feels like our effort is not paying off. Our credit cards APR go all the way to from 13% to 25%, I think we can not get a loan to consolidate the ones with really high interest or a balance transfer because our Fico Scores are around 625 due to our credit availability ratio not a single late payment in six years.
Any advice in how to make our payments more effective?
Thanks in advance for your help
Our credit card debt go all the way to 43K our minimum payments monthly get to $2200 additional to that we can pay $1000 to $1500 more each month.
Should I just put that difference towards the ones with highest interest or pay first the ones with low interest and then transfer the balances of the high interest ones.
If you have cards with small balances that can be paid off and removed from the process do that. That can help with the FICO models.
Generally you want to pay off the accounts with the highest APR's first. This will be the most economical way to proceed. Don't pay the lowest APR's first and then BT. That's going to end up costing you even more money. I doubt anyone is waiving any 0% APR - no fee BT offers your way these days!
I would use the Debt Snowball approach which makes minimum payments on all but the card with the smallest balance and you back extra on that one until its PIF. Then you pay the next smallest balance and so on.
This is the best way in terms of motivation and being FICO friendly. It goes without saying you must stop using the cards.