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Who to pay off first?

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Anonymous
Not applicable

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?

Message 1 of 10
9 REPLIES 9
Anonymous
Not applicable

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
HeavenOhio
Senior Contributor

Re: Who to pay off first?

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

Message 3 of 10
Anonymous
Not applicable

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.
Message 4 of 10
Kforce
Valued Contributor

Re: Who to pay off first?


@Anonymous 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?


 

Message 5 of 10
SouthJamaica
Mega Contributor

Re: Who to pay off first?


@Anonymous 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 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 6 of 10
Anonymous
Not applicable

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.

Message 7 of 10
longtimelurker
Epic 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
HeavenOhio
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.

 

@Anonymous  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. @Anonymous is nowhere near AA territory.

Message 9 of 10
Anonymous
Not applicable

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.

 

@Anonymous  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. @Anonymous 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.

Message 10 of 10
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