how much would you make after selling the house? would you be positive?
Why would you not pay the $11.3k BoA balance that is at 22.24% first? If you can make minimum payments on the others, see if you can knock it out ASAP. WF should be paid off next, right? I guess I am wondering why you would pay a 0% card off before one that you are actively paying interest on.
@KRF wrote:So the snowball method, right, you can either pay the highest interest first or the lowest balance first. It's whatever works best for you. Some people feel more encouraged when they pay off those small balances and are more motivated - that's what works for me, so that's why I'm doing it that way. Does that make sense?
I mean, it makes sense in that you have a choice, and I get that a zero balance is nice, but if your goal is to pay these off as soon as possible, you are choosing the more expensive option, aka the option that takes longer to pay off. It's like 200 bucks a month just in interest.
@Varsity_Lu wrote:
@KRF wrote:So the snowball method, right, you can either pay the highest interest first or the lowest balance first. It's whatever works best for you. Some people feel more encouraged when they pay off those small balances and are more motivated - that's what works for me, so that's why I'm doing it that way. Does that make sense?
I mean, it makes sense in that you have a choice, and I get that a zero balance is nice, but if your goal is to pay these off as soon as possible, you are choosing the more expensive option, aka the option that takes longer to pay off. It's like 200 bucks a month just in interest.
Although I generally agree with you, without knowing the nature of those 0% cards, we can ony guess the true financial cost of tackling the existing interest cards vs the 0% cards.
If the 0% cards retroactively accrue interest for example, and the interest rate is higher, etc. it may be a different calculation. Will they be paid off under their plan before interest hits? Etc. Plus, when those 0% offers expire, the minimum payment on tem is possibly going to increase.
If the OP can and will continue to make ALL payments on time, they have flexibility in their approach. Given the data presented, we can not give entirely constructive answers beyond some cheerleading. That has value too, OP, avoid lates and penalties at all costs.
@BallBounces wrote:Although I generally agree with you, without knowing the nature of those 0% cards, we can ony guess the true financial cost of tackling the existing interest cards vs the 0% cards.
If the 0% cards retroactively accrue interest for example, and the interest rate is higher, etc. it may be a different calculation. Will they be paid off under their plan before interest hits? Etc. Plus, when those 0% offers expire, the minimum payment on tem is possibly going to increase.
If the OP can and will continue to make ALL payments on time, they have flexibility in their approach. Given the data presented, we can not give entirely constructive answers beyond some cheerleading. That has value too, OP, avoid lates and penalties at all costs.
I agree and get it. It just seems odd to me that the OP wouldn't pay off the account that is actively growing interest. But I do understand that we don't have the whole picture from the OP.
On a side note, your signature mentions superFICO. Is this the new UltraFICO score that is being offered or is it something else?
@KRF wrote:
@Varsity_Lu wrote:Why would you not pay the $11.3k BoA balance that is at 22.24% first? If you can make minimum payments on the others, see if you can knock it out ASAP. WF should be paid off next, right? I guess I am wondering why you would pay a 0% card off before one that you are actively paying interest on.
So the snowball method, right, you can either pay the highest interest first or the lowest balance first. It's whatever works best for you. Some people feel more encouraged when they pay off those small balances and are more motivated - that's what works for me, so that's why I'm doing it that way. Does that make sense?
Just looked snowball method up. It's a Dave Ramsey thing I guess. My approach is apparently called the avalanche method: pay the highest interest rate debt first. Learn something new everyday!