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Snowballing

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Anonymous
Not applicable

Snowballing

I would like to use the snowball method over the next couple months to pay off smaller limit credit cards. I've never paid the minimum amount on any of my cards but need to pay the minimum on a couple cards for the next 2 months in order to shift funds to pay off the others in full. Is a minimum payment a red flag after always paying more than the minimum?
Message 1 of 4
3 REPLIES 3
ChessChik47
Frequent Contributor

Re: Snowballing


@Anonymous wrote:
I would like to use the snowball method over the next couple months to pay off smaller limit credit cards. I've never paid the minimum amount on any of my cards but need to pay the minimum on a couple cards for the next 2 months in order to shift funds to pay off the others in full. Is a minimum payment a red flag after always paying more than the minimum?

I'd say it depends on the issuer, what your current utilization/balances are, and how your profile looks overall.  Companies just want to be repaid, so as long as you're paying your bill on time every month and your utilization is not "out of control", you'll probably be ok just paying the minimums for couple months.  Your balances will be decreasing on the other cards, so as long as you're not adding to the debt with new purchases, you should be ok.

Message 2 of 4
SouthJamaica
Mega Contributor

Re: Snowballing


@Anonymous wrote:
I would like to use the snowball method over the next couple months to pay off smaller limit credit cards. I've never paid the minimum amount on any of my cards but need to pay the minimum on a couple cards for the next 2 months in order to shift funds to pay off the others in full. Is a minimum payment a red flag after always paying more than the minimum?

Don't pay the minimum, it is a red flag.

 

Pay the minimum + $5 or so.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 3 of 4
calyx
Super Contributor

Re: Snowballing


@SouthJamaica wrote:

@Anonymous wrote:
I would like to use the snowball method over the next couple months to pay off smaller limit credit cards. I've never paid the minimum amount on any of my cards but need to pay the minimum on a couple cards for the next 2 months in order to shift funds to pay off the others in full. Is a minimum payment a red flag after always paying more than the minimum?

Don't pay the minimum, it is a red flag.

 

Pay the minimum + $5 or so.


^ +1 this.  Pay $5-10 extra and then do the snowball with what's left over.

Happy practitioner of AZE7or8or9or10 | Team Finances > FICO
Message 4 of 4
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