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what to pay off first?

dunsplus
New Contributor

what to pay off first?

im looking to pay off several cc but not sure which ones to do so.
i have 10k to throw at my cc debt.i was thinking of paying off all the smaller ones and continue paying off the 3 big ones
slate,freedom and sapphire they all have largest balance and worst interest rates 25%
or perhaps try to may off as much of the big 3 with high interest?

my list of cards

merrick balance $1652 monthly payment min is $56
citi 946 minimum $40
credit one $2137 minimum $130
capital one $700 minimum $40
quicksilver $611 mininum $30
discover $1400 minimum $52
best buy $777 minimum $40
BOA $2085 minimum $70
slate $2826 minimum $90
freedom $3300 mininum $110
sapphire $4786 minimum $130
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10 REPLIES 10
macinjosh
Senior Contributor

Re: what to pay off first?

It really all depends on the interest rates. Are any of your cards 0%? Also, do you have offers for BT’s on Citi or Discover? And if so, what are the rates? And what are the credit lines on those cards?









Message 2 of 11
dunsplus
New Contributor

Re: what to pay off first?

they are all near max and not too good interest i would say on average 20% i would need to look each one up.
no i dont currently have any transfer offers from any of my cc but wouldn't do me any good since they are all at 90% utilization
Message 3 of 11
macinjosh
Senior Contributor

Re: what to pay off first?

Best option would be to pay off the Freedom & Sapphire cards first and foremost. That'll free up $240/mo to put on other cards.

 

Also, that minimum on the Credit One is the same as the Sapphire and the balance is less than half. If you paid that down, you could potentially knock it out in a few months, freeing up another $130/mo to pay others off faster.










Message 4 of 11
dunsplus
New Contributor

Re: what to pay off first?

yeah that credit one is a killwr i reslly wanted to pay off that one since it has such a high minimum payment for such a low balance compared to other cards
Message 5 of 11
macinjosh
Senior Contributor

Re: what to pay off first?


@dunsplus wrote:
yeah that credit one is a killwr i reslly wanted to pay off that one since it has such a high minimum payment for such a low balance compared to other cards

Well, if you paid Credit One and the Sapphire off, that frees up $260/mo to start. Then you pay the Freedom down with the remainder of your budget, and you would free up a little over $300/mo off the bat. Then in a month or two, not sure what your monthly budget for credit card payments is, the Freedom will be clear, and then tackle the Slate, and BOA after that.










Message 6 of 11
dunsplus
New Contributor

Re: what to pay off first?

i like that plan best...thankfully the sapphire even though has highest balance also is the one with lowest interest 15%. the others credit one,slate,freedom at 25% interest.

i figure the money saved from paying off the higher interest credit one,slate and freedom would go to pay off boa and mainly saphhire even though has lowest rate but highest balance of all cards
Message 7 of 11
macinjosh
Senior Contributor

Re: what to pay off first?

Oh, the Sapphire is only 15%? Not bad. But yes, pay off the Credit one, the Slate, and the Freedom. That would even leave you something left over to start on the Sapphire. Although, you could pay off the Best Buy card because I know they have higher interest than your Sapphire does.










Message 8 of 11
SouthJamaica
Super Contributor

Re: what to pay off first?


@dunsplus wrote:
im looking to pay off several cc but not sure which ones to do so.
i have 10k to throw at my cc debt.i was thinking of paying off all the smaller ones and continue paying off the 3 big ones
slate,freedom and sapphire they all have largest balance and worst interest rates 25%
or perhaps try to may off as much of the big 3 with high interest?

my list of cards

merrick balance $1652 monthly payment min is $56
citi 946 minimum $40
credit one $2137 minimum $130
capital one $700 minimum $40
quicksilver $611 mininum $30
discover $1400 minimum $52
best buy $777 minimum $40
BOA $2085 minimum $70
slate $2826 minimum $90
freedom $3300 mininum $110
sapphire $4786 minimum $130

Since all the cards are high interest, you should just use the snowball method:

1. Stop using the cards.

2. Use the 10k to pay off as many of the smallest balances as you can. You'll be freed from those monthly payments and can apply the money you save towards the remaining accounts. On other cards pay minimum + something each month.

3. Pay off smallest remaining balance first, then next smallest, and so on.
4. On other cards pay minimum + something each month.
As each balance turns to zero, that will free up your remaining monthly cash to apply to the next smallest balance.

 


Total revolving limits 653000 (575000 reporting) FICO 8: EQ 716 TU 747 EX 715

Message 9 of 11
ImTheDevil
Community Leader
Super Contributor

Re: what to pay off first?

Agreed with SouthJamaica with one caveat - pay off that awful Credit One card and close it. You’ve got some fine cards. There’s no need for a vulture like that in your profile.


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