what to ;pay first

[pennypncher]

I have three credit cards that I am paying on. I am not charging to or increasing their balance.  I have $2000 to use toward the cards.  I can either pay one card off completely or I can reduce a higher interest card balance by $2000, the only problem with that is that card will then reduce my credit limit. what would the smarter path be?

[InvincibleSummer3]

What's your goal, overall? Is it a bigger deal to reduce your debt or raise your score?

If they're going to lower your limit, it sounds like there's some kind of issue there. If it were me, and I was in the early stages of potential trouble - I'd pay the high interest card down and save myself some interest money.

[pennypncher]

dear Grumpy Cat !  :-) I am rising out of trouble,and that is why they reduce my balance when they can. and that is why I'm not sure what to pay for first.  kind of double edge here. damned if you do and damned if you don't. Save on interest which in turns puts more of my payment on principal, lower my balance and maybe lower my slowly rising credit score or pay off a balance and raise my credit score.    wonder if they would agree not to lower my balance if I don't default on them 

[InvincibleSummer3]

If you're not planning on applying for anything in the short term, then maybe the hit to the score isn't as much to worry about? Not that I would ever advise anyone to tank their score, but I see a lot of people who get insane about small 10 point swings. 

And this maybe is just me, but I had better luck repairing relationships with creditors when I could show that I made paying them a priority. I did get balance chased by one creditor, but after some on- time payments they eventually agreed to restore my previous CL. There's always hope. Just remember that your score isn't always the biggest priority, especially if you're not apping right away. Maybe salvaging a working relationship w/ a creditor is also a decent goal. Or, if you think that paying off a smaller-balance card will make it easier for you in the long run, do that. It's good to pay down debt, so either way you're still doing the right thing.

[DaveSignal]

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pennypncher wrote:

dear Grumpy Cat !  :-) I am rising out of trouble,and that is why they reduce my balance when they can. and that is why I'm not sure what to pay for first.  kind of double edge here. damned if you do and damned if you don't. Save on interest which in turns puts more of my payment on principal, lower my balance and maybe lower my slowly rising credit score or pay off a balance and raise my credit score.    wonder if they would agree not to lower my balance if I don't default on them 

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If the creditor is going to lower your CL as your balance decreases, then your util is always going to be the same and this maxed out card is going to cost you interest -and- hurt your score until you completely pay if off.  I would put the majority of my money toward getting this card to a $0 first, then start woking on util with your other cards.

[pennypncher]

thank you, I appreciate the advice and will probably go in that direction

[pennypncher]

thank I truly appreciate the help...it's never really clear to me. just want it all to go away!!  and it will