topic Re: Repaying multiple cards/accounts in Credit Cards

Repaying multiple cards/accounts

Anonymous — Wed, 28 Mar 2012 21:07:50 GMT

Over the holidays and just being irresponsible I have managed to max out all four of my CC's. Granted three of the are 700 and one is 500 so it's not the end of the world, but I'm unsure of the best approach to paying all of these down to zero. One at a time, or a couple hundred bucks on each every paycheck?

Thanks in advance

Alaska8979

Re: Repaying multiple cards/accounts

Anonymous — Wed, 28 Mar 2012 21:09:02 GMT

@Anonymous wrote:
Over the holidays and just being irresponsible I have managed to max out all four of my CC's. Granted three of the are 700 and one is 500 so it's not the end of the world, but I'm unsure of the best approach to paying all of these down to zero. One at a time, or a couple hundred bucks on each every paycheck?

Thanks in advance

Alaska8979

I would paydown the one with the highest APR first.

Re: Repaying multiple cards/accounts

LS2982 — Wed, 28 Mar 2012 21:09:27 GMT

@Anonymous wrote:
Over the holidays and just being irresponsible I have managed to max out all four of my CC's. Granted three of the are 700 and one is 500 so it's not the end of the world, but I'm unsure of the best approach to paying all of these down to zero. One at a time, or a couple hundred bucks on each every paycheck?

Thanks in advance

Alaska8979

How much money do you have to work with?

Re: Repaying multiple cards/accounts

Anonymous — Wed, 28 Mar 2012 21:09:34 GMT

List all 4 of the cards with their: (1) Balances (2) Credit Limits (3) APR's

Re: Repaying multiple cards/accounts

webhopper — Wed, 28 Mar 2012 21:10:51 GMT

Figure out how much you can put towards these cards and pay them in order from smallest to largest, paying only minimum payments to the ones with larger balances. Pay the most to the one with the smallest balance Also, you could try picking up some extra money by mowing grass or babysitting for a neighbor...

Re: Repaying multiple cards/accounts

LS2982 — Wed, 28 Mar 2012 21:12:40 GMT

@Anonymous wrote:
List all 4 of the cards with their: (1) Balances (2) Credit Limits (3) APR's

Re: Repaying multiple cards/accounts

oracles — Wed, 28 Mar 2012 21:14:32 GMT

@webhopper wrote:
Figure out how much you can put towards these cards and pay them in order from smallest to largest, paying only minimum payments to the ones with larger balances. Pay the most to the one with the smallest balance Also, you could try picking up some extra money by mowing grass or babysitting for a neighbor...

Actually, i would do the total opposite. Pay the large balances first and pay the minmum on the small accounts. You save more money

Re: Repaying multiple cards/accounts

webhopper — Wed, 28 Mar 2012 21:17:05 GMT

@oracles wrote:
@webhopper wrote:
Figure out how much you can put towards these cards and pay them in order from smallest to largest, paying only minimum payments to the ones with larger balances. Pay the most to the one with the smallest balance Also, you could try picking up some extra money by mowing grass or babysitting for a neighbor...

Actually, i would do the total opposite. Pay the large balances first and pay the minmum on the small accounts. You save more money

What you save in money you lose in momentum of paying them off. Once the smaller balances are paid, you apply the minimum payment from those to your larger balances, so. For people with debt, they may need some wins to keep them going psychologically.

Re: Repaying multiple cards/accounts

LS2982 — Wed, 28 Mar 2012 21:18:04 GMT

@oracles wrote:
@webhopper wrote:
Figure out how much you can put towards these cards and pay them in order from smallest to largest, paying only minimum payments to the ones with larger balances. Pay the most to the one with the smallest balance Also, you could try picking up some extra money by mowing grass or babysitting for a neighbor...

Actually, i would do the total opposite. Pay the large balances first and pay the minmum on the small accounts. You save more money

I think the APR is going to weigh heavy on this one, as the OP's cards with the current limits are probably high APR.

Re: Repaying multiple cards/accounts

Anonymous — Wed, 28 Mar 2012 21:19:28 GMT

Neither approach is right/wrong, it's a YMMV situation.

It all depends on the OP's psychological makeup. If he gets a psyche boost from paying down one balance, then he should do it the way webhopper mentioned (which seems to fall in line with Dave Ramsey)... but if the psychological boost is something that is ignorable to the OP, then he should just pay off the largest APR card first.

It just depends on which kind of a person the OP is and what he thinks would benefit him the most.

Re: Repaying multiple cards/accounts

oracles — Wed, 28 Mar 2012 21:22:30 GMT

@webhopper wrote:
@oracles wrote:
@webhopper wrote:
Figure out how much you can put towards these cards and pay them in order from smallest to largest, paying only minimum payments to the ones with larger balances. Pay the most to the one with the smallest balance Also, you could try picking up some extra money by mowing grass or babysitting for a neighbor...

Actually, i would do the total opposite. Pay the large balances first and pay the minmum on the small accounts. You save more money

What you save in money you lose in momentum of paying them off. Once the smaller balances are paid, you apply the minimum payment from those to your larger balances, so. For people with debt, they may need some wins to keep them going psychologically.

For people who allow the thought of saving themselves money should be more than enough momentum for them to continue in this fashion i would think

EDIT: But i agree no way is incorrect

Re: Repaying multiple cards/accounts

Anonymous — Wed, 28 Mar 2012 21:26:59 GMT

I've got:

Orchard Bank

Limit 720, balance 724

CAp One

Limit 750 balance 722.21

Cap One, limit 750, balance 717.08

BestBuy Reward Zone limit 500, balance 475.37

Not sure of APR's, but probabaly all in the 20%'s.

First check of the month I have about $300 after rent, secon check about 700 after bills.

Re: Repaying multiple cards/accounts

Anonymous — Wed, 28 Mar 2012 21:34:07 GMT

I'd start with the Orchard Bank, just because that one is actually over the 100% of it's CL.

Go verify tonight what your APR's are for each card. Since your balances/credit lines are pretty low, I'd personally take the APR approach. I'd pay the minimums on 3 of the cards and attack the highest APR first, AFTER you get that Orchard under 100% of its threshold.

Once you've paid off one card, pay the minimums on 2 of those cards and what you paid on Card A, you put on Card B so it'd be Card B's minimum + Card A's monthly payment. And then so on and so forth.

But get your APR's straight. And get that Orchard Bank card straightened out.

Re: Repaying multiple cards/accounts

oracles — Wed, 28 Mar 2012 21:36:04 GMT

@Anonymous wrote:
I'd start with the Orchard Bank, just because that one is actually over the 100% of it's CL.

Go verify tonight what your APR's are for each card. Since your balances/credit lines are pretty low, I'd personally take the APR approach. I'd pay the minimums on 3 of the cards and attack the highest APR first, AFTER you get that Orchard under 100% of its threshold.

Once you've paid off one card, pay the minimums on 2 of those cards and what you paid on Card A, you put on Card B so it'd be Card B's minimum + Card A's monthly payment. And then so on and so forth.

But get your APR's straight. And get that Orchard Bank card straightened out.

Re: Repaying multiple cards/accounts

Walt_K — Wed, 28 Mar 2012 21:36:17 GMT

@Anonymous wrote:
I've got:

Orchard Bank
Limit 720, balance 724

CAp One
Limit 750 balance 722.21

Cap One, limit 750, balance 717.08

BestBuy Reward Zone limit 500, balance 475.37

Not sure of APR's, but probabaly all in the 20%'s.

First check of the month I have about $300 after rent, secon check about 700 after bills.

If you're saying that you have $1000 per month to put toward your CCs, this really doesn't matter that much. They'll all be paid off in about 2.5 months. I might start with Orchard just because it is over the limit. Other than that, as mentioned above, highest APR first saves most money (but 2.5 months isn't going to make much difference especially if APRs are all similar).

Re: Repaying multiple cards/accounts

Anonymous — Wed, 28 Mar 2012 21:43:08 GMT

@Walt_K wrote:
@Anonymous wrote:
I've got:

Orchard Bank
Limit 720, balance 724

CAp One
Limit 750 balance 722.21

Cap One, limit 750, balance 717.08

BestBuy Reward Zone limit 500, balance 475.37

Not sure of APR's, but probabaly all in the 20%'s.

First check of the month I have about $300 after rent, secon check about 700 after bills.

If you're saying that you have $1000 per month to put toward your CCs, this really doesn't matter that much. They'll all be paid off in about 2.5 months. I might start with Orchard just because it is over the limit. Other than that, as mentioned above, highest APR first saves most money (but 2.5 months isn't going to make much difference especially if APRs are all similar).

+1 really a little will power an d not eatting out as much does wonders

Re: Repaying multiple cards/accounts

LS2982 — Wed, 28 Mar 2012 21:58:35 GMT

@Walt_K wrote:
@Anonymous wrote:
I've got:

Orchard Bank
Limit 720, balance 724

CAp One
Limit 750 balance 722.21

Cap One, limit 750, balance 717.08

BestBuy Reward Zone limit 500, balance 475.37

Not sure of APR's, but probabaly all in the 20%'s.

First check of the month I have about $300 after rent, secon check about 700 after bills.

If you're saying that you have $1000 per month to put toward your CCs, this really doesn't matter that much. They'll all be paid off in about 2.5 months. I might start with Orchard just because it is over the limit. Other than that, as mentioned above, highest APR first saves most money (but 2.5 months isn't going to make much difference especially if APRs are all similar).