A tough decision! Knock off lowest balance or highest payment?

[IOBA]

All of you on myfico will provide a much more "fun" answer than DH, so I am asking you.

(The numbers have been altered, but the percentages remain true.)

I have about 650 in cash savings and three zero percent interest credit cards.  

CC#1 - must be paid off by May 2014

balance - 633

pymt - 5.30

CC#2 - must be paid off by June 2014

balance - 380

pymt - 3.15

CC#3 - must be paid off by October 2014

balance - 837

pymt - 4.00

I could easily use savings to pay off cc#1 in full.  I could easily pay off cc#2 right now.

Doing so frees up a bit of cash and will allow me to put the budgeted payment into savings or towards the other cc's.

What do you think -

Use savings and pay off cc#1, which has the biggest payment, and the middle balance?

Use savings and pay off cc#2, which has the lowest payment, and the lowest balance?

I don't see any point on focusing on the cc#3 right now.  Once the other two are paid off, then I will add extra money to this one.

Thanks!  

[guiness56]

IMO, I would start with the lowest balance first.  Not only does it free up money, you will have 0 balances showing quicker which FICO likes.

Then use that money and pay off the next one, etc.

[takeshi74]

+1 -- use the approach that yields 0 balances faster.

[BootStraps]

Pay off the lowest and put the rest of the money to lower the balance of the next lowest card.

[IOBA]

Yeah, that's what I am going to do.  Wipe out savings, pay off the smallest balance, and for a few minutes, breath a sigh of relief.  Ah, one down and two left.  

I'd love to knock out the one with the highest payment, but that is not to be.  

January brings a smaller paycheck.  (Medical insurance premiums going up, etc.)

Off to throw that first snowball...    Someone get the hot chocolate ready for me!