Credit Card Paydown Strategy

[Anonymous]

It doesn't make a lot of sense to me to earn 1% or even 5% cash back or points if I'm paying more than that in interest. If that's why you're keeping the balance on the higher APR card, consider the return.

I PIF as much as possible, and if there's a paycheck that I have to scrimp a little, I sacrifice on the 0% cards (American Airlines, Walmart financing, Amazon, and some of my intro rates). 

I try to make sure that I look at all CCs as debit cards. If I don't have the money available to PIF, I don't make the purchase. Some months are different, but the next, I get them PIF, and I always over-pay the minimum.

Just my $0.02

[sexy_kitten7]

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@Anonymous wrote:

It doesn't make a lot of sense to me to earn 1% or even 5% cash back or points if I'm paying more than that in interest.

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Exactly. You can put anything you want on a rewards card (everyday or large expenses) but make sure you pay in full every month.

Remember that even 1 month of interest at a "low" 12% APR will wipe out your 1% cashback.

[cobbson]

Surely a dilemma, one in which you can't have your cake and eat it too. Just like a lot of things in life, it's a matter of "best choice" for your individual situation.