Do I pay off the revolving or installment first?

[Blazesian]

Quick question, 90% of my debt is in revolving and I have a couple of installment loans.

Revolving Debt is :

1) Walmart Store Card ($300 Limit) - $122.08

2) Jared Store Card ($1650 Limit) -$358.00

3) Discover ($750) -$659

4) Cap One Rewards - ($750) - $734

5) Cap One Platinum - ($500) -$493

6) Amazon Chase - ($400) $350

Installment Debt is:

1) Credit Union Loan on 2002 Honda Accord (first car, first line of credit) - ($4,800) -$2900

2) Credit Union Emergency Loan when I lost my job ($700) - $233.35

My question is:

I was told to leave that for the remaining four months that are left and just focus on my revolving - but being SO CLOSE and knowing that two debts could be

paid off makes me antsy. BUT if it will actually hurt me by paying it off, I don't want to.

My plan was to pay off Walmart and the Emergency loan tomorrow on pay day. Then target Amazon Chase (because I hate that card) on my next two pay checks and keep going.

[chasmith]

@Blazesian wrote:

Quick question, 90% of my debt is in revolving and I have a couple of installment loans.

Revolving Debt is :

1) Walmart Store Card ($300 Limit) - $122.08

2) Jared Store Card ($1650 Limit) -$358.00

3) Discover ($750) -$659

4) Cap One Rewards - ($750) - $734

5) Cap One Platinum - ($500) -$493

6) Amazon Chase - ($400) $350

Installment Debt is:

1) Credit Union Loan on 2002 Honda Accord (first car, first line of credit) - ($4,800) -$2900

2) Credit Union Emergency Loan when I lost my job ($700) - $233.35

My question is:

I was told to leave that for the remaining four months that are left and just focus on my revolving - but being SO CLOSE and knowing that two debts could be

paid off makes me antsy. BUT if it will actually hurt me by paying it off, I don't want to.

My plan was to pay off Walmart and the Emergency loan tomorrow on pay day. Then target Amazon Chase (because I hate that card) on my next two pay checks and keep going.

---

Utilization on revolving debt has a major impact on your score.  In addition to high (62%) total utilization you are "maxed out" on the two CapOne cards (over 90%) and nearly maxed out on Discover and Amazon (87-88%).  Having installment loans helps your score slightly for "credit mix".  Targeting one loan at a time and paying them down is called the "snowball" approach but I wouldn't start there.

While paying the minimums and the installment loans, I would focus on getting the CapOne and then the other two below 50%.  Then work on getting four cards to zero balance.  You will get the best score for utilization by having:

1) Utilization below 10%'

2) More than half your cards at zero balance

3) At least one card with a balance.

Do this and your installments will take care of themselves.

[DaveSignal]

pay the revolving first.

[myjourney]

---

@Blazesian wrote:

Quick question, 90% of my debt is in revolving and I have a couple of installment loans.

Revolving Debt is :

1) Walmart Store Card ($300 Limit) - $122.08

2) Jared Store Card ($1650 Limit) -$358.00

3) Discover ($750) -$659

4) Cap One Rewards - ($750) - $734

5) Cap One Platinum - ($500) -$493

6) Amazon Chase - ($400) $350

Installment Debt is:

1) Credit Union Loan on 2002 Honda Accord (first car, first line of credit) - ($4,800) -$2900

2) Credit Union Emergency Loan when I lost my job ($700) - $233.35

My question is:

I was told to leave that for the remaining four months that are left and just focus on my revolving - but being SO CLOSE and knowing that two debts could be

paid off makes me antsy. BUT if it will actually hurt me by paying it off, I don't want to.

My plan was to pay off Walmart and the Emergency loan tomorrow on pay day. Then target Amazon Chase (because I hate that card) on my next two pay checks and keep going.

---

Seeing how everything except the revolving credit are on a fixed payment IMHO

pay the revolving credit first as it has a bigger impact on your financial picture as well as your scores.

installment credit has a lower impact as far as scoring is concerned

[guiness56]

---

@chasmith wrote:

@Blazesian wrote:

Quick question, 90% of my debt is in revolving and I have a couple of installment loans.

Revolving Debt is :

1) Walmart Store Card ($300 Limit) - $122.08

2) Jared Store Card ($1650 Limit) -$358.00

3) Discover ($750) -$659

4) Cap One Rewards - ($750) - $734

5) Cap One Platinum - ($500) -$493

6) Amazon Chase - ($400) $350

Installment Debt is:

1) Credit Union Loan on 2002 Honda Accord (first car, first line of credit) - ($4,800) -$2900

2) Credit Union Emergency Loan when I lost my job ($700) - $233.35

My question is:

I was told to leave that for the remaining four months that are left and just focus on my revolving - but being SO CLOSE and knowing that two debts could be

paid off makes me antsy. BUT if it will actually hurt me by paying it off, I don't want to.

My plan was to pay off Walmart and the Emergency loan tomorrow on pay day. Then target Amazon Chase (because I hate that card) on my next two pay checks and keep going.

---

Utilization on revolving debt has a major impact on your score.  In addition to high (62%) total utilization you are "maxed out" on the two CapOne cards (over 90%) and nearly maxed out on Discover and Amazon (87-88%).  Having installment loans helps your score slightly for "credit mix".  Targeting one loan at a time and paying them down is called the "snowball" approach but I wouldn't start there.

While paying the minimums and the installment loans, I would focus on getting the CapOne and then the other two below 50%.  Then work on getting four cards to zero balance.  You will get the best score for utilization by having:

1) Utilization below 10%'

2) More than half your cards at zero balance

3) At least one card with a balance.

Do this and your installments will take care of themselves.

---

+1

I agree.  You are dinged for the maxed out cards individually and then for overall high utilization.  Get the maxed out cards down to at least half.