Paying Credit Card Advice

[Anonymous]

Just seeing what others would do. I have 4 credit cards and I’ve been working on paying them down. I should have about $2500 extra this month that I can use towards my cards. Card 2 is my main card that I use for my regular spending. How would you distribute the $2500?

Card - Amount - Utilization - Interest Rate

1 - $975 - 7% - 14%

2 - $5000 - 20% - 10%

3 - $725 - 5% - 13%

4 - $4000 - 19% - 19%

[Anonymous]

Since all of your cards are below 28.9% utilization already, I would just put the $2500 towards card number 4 since it has the highest interest. 

With that said, some people like to zero out as many cards as possible so you could also knock out 1 and 3 and put the rest towards 2. I caution against doing that right now since many creditors are taking CLD action after getting paid off quickly. 

I am all about saving as much money as possible so if it were me, I would knock card 4 down. 

[SouthJamaica]

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@Anonymous wrote:

Just seeing what others would do. I have 4 credit cards and I’ve been working on paying them down. I should have about $2500 extra this month that I can use towards my cards. Card 2 is my main card that I use for my regular spending. How would you distribute the $2500?

Card - Amount - Utilization - Interest Rate

1 - $975 - 7% - 14%

2 - $5000 - 20% - 10%

3 - $725 - 5% - 13%

4 - $4000 - 19% - 19%

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I would pay off the 2 smaller balances, and apply the remaining $800 to card number 4.

[blindambition]

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@SouthJamaica wrote:

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@Anonymous wrote:

Just seeing what others would do. I have 4 credit cards and I’ve been working on paying them down. I should have about $2500 extra this month that I can use towards my cards. Card 2 is my main card that I use for my regular spending. How would you distribute the $2500?

Card - Amount - Utilization - Interest Rate

1 - $975 - 7% - 14%

2 - $5000 - 20% - 10%

3 - $725 - 5% - 13%

4 - $4000 - 19% - 19%

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I would pay off the 2 smaller balances, and apply the remaining $800 to card number 4.

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I would agree with @SouthJamaica, but Saeran makes a valid point about lenders. Which lenders?

[M_Smart007]

MHO, is to knock out the highest interest.