topic Which should I pay first? Score not a concern in General Credit Topics

Which should I pay first? Score not a concern

2134ast — Sat, 18 Nov 2023 00:54:13 GMT

Hello. I have a pretty nuanced question. I've been paying down credit card debt and im down to the last two accounts and wanted some advice on which to pay first. My Navy Fed card has a balance of 11k with a limit of 28k and interest rate of about 11%. My PayPal Credit acct has a balance of about $2300 with a 10k limit but the balance is interest free until March. I have the $2300 to pay off PP now, but like I said it's interest free until March, so I'm wondering if I should pay it towards NF instead since it's accumulating interest now. It hurts a bit to pay the minimum and see like half of it go to interest. *cringe* Score isn't a factor so please don't consider in your answer. (It's 791 and I don't plan to

apply for anything for any reason for a long time.) Thanks in advance!

Re: Which should I pay first? Score not a concern

JoeRockhead — Sat, 18 Nov 2023 02:45:12 GMT

I'd throw everything extra you can at the Navy balance to get it gone... The 0% card isn't costing you anything right now.

Re: Which should I pay first? Score not a concern

NoMoreE46 — Sat, 18 Nov 2023 04:28:07 GMT

Welcome @2134ast .

Use that $2300 to pay the NFCU as noted by @JoeRockhead .

Re: Which should I pay first? Score not a concern

2134ast — Sat, 18 Nov 2023 06:36:09 GMT

@JoeRockhead Thanks for the responses and welcome! Paying NF does seem like the obvious solution but I should've mentioned that with PP Credit, if your special promotion purchase isn't paid within 6 months, all accumulated interest comes due and I think the rate is like 29%. With that info, would you still go with NF?

Re: Which should I pay first? Score not a concern

JoeRockhead — Sat, 18 Nov 2023 10:30:25 GMT

@2134ast wrote:
@JoeRockhead Thanks for the responses and welcome! Paying NF does seem like the obvious solution but I should've mentioned that with PP Credit, if your special promotion purchase isn't paid within 6 months, all accumulated interest comes due and I think the rate is like 29%. With that info, would you still go with NF?

Well, that does change things up a bit... If you aren't going to be able to swing roughly $575 payments each month to Synchrony from now until March to get it paid off in time, I'd either go ahead and pay it off to avoid the risk of paying all that backdated interest on the original balance, which will be hefty.

Or, you could pay enough of the PP balance down to make the remaining payments (to get it to zero on time) more manageable, then apply the remaining cash towards the NFCU balance. Ultimately you know your finances better than anyone so how you tackle it is for you to decide but, I'd do whatever best works for you to ensure getting that PP balance paid in full prior to the 0% offer expiring. After that's in your rear view mirror you can apply any extra monthly funds on paying down the NFCU.

Re: Which should I pay first? Score not a concern

SouthJamaica — Sat, 18 Nov 2023 18:00:32 GMT

@2134ast wrote:
Hello. I have a pretty nuanced question. I've been paying down credit card debt and im down to the last two accounts and wanted some advice on which to pay first. My Navy Fed card has a balance of 11k with a limit of 28k and interest rate of about 11%. My PayPal Credit acct has a balance of about $2300 with a 10k limit but the balance is interest free until March. I have the $2300 to pay off PP now, but like I said it's interest free until March, so I'm wondering if I should pay it towards NF instead since it's accumulating interest now. It hurts a bit to pay the minimum and see like half of it go to interest. *cringe* Score isn't a factor so please don't consider in your answer. (It's 791 and I don't plan to
apply for anything for any reason for a long time.) Thanks in advance!

Since score isn't a concern, you should pay down the NFCU card.

Re: Which should I pay first? Score not a concern

SouthJamaica — Sat, 18 Nov 2023 18:02:04 GMT

@2134ast wrote:
@JoeRockhead Thanks for the responses and welcome! Paying NF does seem like the obvious solution but I should've mentioned that with PP Credit, if your special promotion purchase isn't paid within 6 months, all accumulated interest comes due and I think the rate is like 29%. With that info, would you still go with NF?

You should pay the PayPal account immediately, then. You don't want to have that hanging over your head. And in the future don't take promotional offers from an account like that.

Re: Which should I pay first? Score not a concern

2134ast — Sat, 18 Nov 2023 21:57:18 GMT

Thanks everyone for your advice! I'm gonna pay off the PP Credit then I can focus solely on NF.

Re: Which should I pay first? Score not a concern

SouthJamaica — Sun, 19 Nov 2023 03:47:54 GMT

@2134ast wrote:
Thanks everyone for your advice! I'm gonna pay off the PP Credit then I can focus solely on NF.

Good.

And welcome to the forum.