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Who to pay off first?

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Established Contributor

Who to pay off first?

So I have 3k that I can throw at some debt. How should I allocate it?

 

Discover - 2040/6500 (0% till Aug)

Amex ED - 3920/7000 (0% till Oct)

Citi AA - 4200/7500 (0% till Dec)

 

should I pay off Discover then put the remaining towards AMEX? Or should I try to get the Utililzation down on Amex and Citi first?

Amex Green NPSL, Amex Hilton Surpass 5k, Amex Marriott Bonvoy 1k, AMEX BBP 1k, AMEX Biz Cash 6k, BOA Cash Rewards 5k, BOA Better Balance Rewards 2k, Care Credit 15k, Chase Amazon Visa 19.825k, Discover 11.8k, Discover 12.5k, Nordstrom Store 4.5k , Fidelity Visa 10k, Cap 1 QS 15k, Cap 1 Savor 10.5k, Citi Rewards+ 4.4k, Citi DC 8k, Citi Advantage Platinum 5.5k, US Cash+ 3.5k, Altitude Reserve 12.5k, Paypal Mastercard 4k, Apple Card 6.5k, Wells Fargo Cash Wise 5k, BOA Premium Rewards 8k, Citi AA Biz 1.5k, Flexperks Biz 3k
Message 1 of 10
9 REPLIES 9
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Established Member

Re: Who to pay off first?

Personally, I would pay off Disco and throw the rest at AmEx.. That eliminates one creditor and stands the best chance of saving on interest in the future, given promo expirations...
Message 2 of 10
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Community Leader
Senior Contributor

Re: Who to pay off first?

I second the motion to pay according to promo expiration dates.

Message 3 of 10
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Valued Contributor

Re: Who to pay off first?

I would pay all of them down, but ensure you can pay them off by end of BT.

I don't see the point of paying off one card since they don't have interest anyway.
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Message 4 of 10
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Valued Contributor

Re: Who to pay off first?


@mr_suave wrote:

So I have 3k that I can throw at some debt. How should I allocate it?

 

Discover - 2040/6500 (0% till Aug)  ( $ 1,300 )

Amex ED - 3920/7000 (0% till Oct)  ( $ 1,000 )

Citi AA - 4200/7500 (0% till Dec)      ( $ 700 )

 

should I pay off Discover then put the remaining towards AMEX? Or should I try to get the Utililzation down on Amex and Citi first?


 

FNBO 2% Cashback Visa (20k) / Bank of the West Cashback MC (20k) / US-Bank Cash+ (15k)
FNBO Travel Elite (15k) / Citi Double Cash (20k) / US Alliance 3% (20k)
Ficos : 830 / AAoA : 9 yrs / AoOA : 24 Yrs / AoYA : 0
Message 5 of 10
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Super Contributor

Re: Who to pay off first?


@mr_suave wrote:

So I have 3k that I can throw at some debt. How should I allocate it?

 

Discover - 2040/6500 (0% till Aug)

Amex ED - 3920/7000 (0% till Oct)

Citi AA - 4200/7500 (0% till Dec)

 

should I pay off Discover then put the remaining towards AMEX? Or should I try to get the Utililzation down on Amex and Citi first?


If you have all the cards in your sig and they're all at zero, then I wouldn't pay Discover off, I would just pay things off evenly, bringing everything down to 48%, then 28% and so on.


Total revolving limits 653000 (575000 reporting)

Message 6 of 10
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Established Contributor

Re: Who to pay off first?

Thanks for the replies! So seems like most people are saying I should get discover and Amex below 29% and Citi below 49% since all are at 0. I’m certain I’ll be able to pay off discover and Amex before the promo expires but citi I’m not so sure.

Amex Green NPSL, Amex Hilton Surpass 5k, Amex Marriott Bonvoy 1k, AMEX BBP 1k, AMEX Biz Cash 6k, BOA Cash Rewards 5k, BOA Better Balance Rewards 2k, Care Credit 15k, Chase Amazon Visa 19.825k, Discover 11.8k, Discover 12.5k, Nordstrom Store 4.5k , Fidelity Visa 10k, Cap 1 QS 15k, Cap 1 Savor 10.5k, Citi Rewards+ 4.4k, Citi DC 8k, Citi Advantage Platinum 5.5k, US Cash+ 3.5k, Altitude Reserve 12.5k, Paypal Mastercard 4k, Apple Card 6.5k, Wells Fargo Cash Wise 5k, BOA Premium Rewards 8k, Citi AA Biz 1.5k, Flexperks Biz 3k
Message 7 of 10
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Mega Contributor

Re: Who to pay off first?

To me, the non-promo APRs should also factor in to the decision, along with how confident you are about paying off in time.  I see you just said Discover and Amex are doable, Citi not so sure.

 

So, if the Citi APR was very high (especially compared to the others) I would certainly want to put significant money towards that now.

Message 8 of 10
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Community Leader
Senior Contributor

Re: Who to pay off first?

Yeah, if there's any chance that these promos might not be paid off on time, factor in the non-promo APRs.

 

@mr_suave  didn't mention scoring as a concern, which is why I didn't suggest working toward thresholds. However, I would have suggested that approach had adverse action been a concern. @mr_suave is nowhere near AA territory.

Message 9 of 10
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Established Contributor

Re: Who to pay off first?


@HeavenOhio wrote:

Yeah, if there's any chance that these promos might not be paid off on time, factor in the non-promo APRs.

 

@mr_suave  didn't mention scoring as a concern, which is why I didn't suggest working toward thresholds. However, I would have suggested that approach had adverse action been a concern. @mr_suave is nowhere near AA territory.


As far as non promo APRs go they are all pretty similar. Citi and Amex are both 25% (Citi is slightly higher but not by much). I know horrible but I normally PIF unless I’m takin advantage of a BT offer. I need to get my APR reduced since my scores are much better now but haven’t gotten around to it (all of my scores are in the 700s currently). Otherwise all of my other cards are PIF except these 3. Out of the 3 cards, Discover has the lowest APR at 21%.

 

With that being said, I plan to BT what I can’t pay off by the Promo date. I normally have offers on one on my other accounts. However, 2 out of those 3 cards will certainly be paid off though. If I had to guess, I’ll maybe have 2-2.5k left over on one card.

Amex Green NPSL, Amex Hilton Surpass 5k, Amex Marriott Bonvoy 1k, AMEX BBP 1k, AMEX Biz Cash 6k, BOA Cash Rewards 5k, BOA Better Balance Rewards 2k, Care Credit 15k, Chase Amazon Visa 19.825k, Discover 11.8k, Discover 12.5k, Nordstrom Store 4.5k , Fidelity Visa 10k, Cap 1 QS 15k, Cap 1 Savor 10.5k, Citi Rewards+ 4.4k, Citi DC 8k, Citi Advantage Platinum 5.5k, US Cash+ 3.5k, Altitude Reserve 12.5k, Paypal Mastercard 4k, Apple Card 6.5k, Wells Fargo Cash Wise 5k, BOA Premium Rewards 8k, Citi AA Biz 1.5k, Flexperks Biz 3k
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