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DmarieK
My loves!!
Member since 1/06 9203 total posts
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Question about paying off credit cards
I know they say to pay off credit cards with the highest interest rate first. My question is do you pay the minimum on other cards while your doing that or do you pay lets say min plus finance charge? I'm having a baby in march and want to try my best to pay off my CC's asap so I can get a bigger apartment eventually.
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Posted 11/2/07 1:41 PM  |
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Erica
LIF Adult
Member since 5/05 11767 total posts
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Re: Question about paying off credit cards
they say just minimums - and everything else you have (let's say the money you would send in for the finance charges) should go to the highest card.
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| Posted 11/2/07 1:44 PM |
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Ginger123
Sooo happy
Member since 8/07 1235 total posts
Name:
dana
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Re: Question about paying off credit cards
best thing to do is consolidate.... check into taking a personal loan from your bank to consolidate and have one low apr payment a month
Message edited 11/2/2007 1:45:32 PM.
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| Posted 11/2/07 1:45 PM |
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pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Re: Question about paying off credit cards
Posted by Ericaf
they say just minimums - and everything else you have (let's say the money you would send in for the finance charges) should go to the highest card.
I agree with this...pay the minimum on the lower rate cards....good luck
I am in the process of doing this now too, fun fun fun 
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| Posted 11/2/07 1:45 PM |
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luckysmom
Yes it is! Going as planned:)
Member since 6/07 5339 total posts
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Re: Question about paying off credit cards
ALWAYS pay more than the minimum, otherwise you are paying of mostly finance charges. Especially if you have a higher balance.
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| Posted 11/2/07 1:45 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
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Re: Question about paying off credit cards
That is pretty much it but you are suppose to take what ever extra you were putting towards the other cards and apply that to the highest interest rate card until that one is paid off. Once that card is paid off, you take the payment from card #1 and the minimum of card #2, combine them and pay down card #2 until that is done. Continue with all cards until they are all paid off.
Just make the min. payments on the other cards if you are doing this.
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| Posted 11/2/07 1:46 PM |
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luckysmom
Yes it is! Going as planned:)
Member since 6/07 5339 total posts
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Re: Question about paying off credit cards
Posted by Ginger123
best thing to do is consolidate.... check into taking a personal loan from your bank to consolidate and have one low apr payment a month
Oh my SIL did this and it turned out to be the best thing they did
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| Posted 11/2/07 1:46 PM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: Question about paying off credit cards
always pay more than the min, and if you can try to switch your balance to a card with a 0% interest rate.
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| Posted 11/2/07 1:51 PM |
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headoverheels
s'il vous plaît
Member since 6/07 42079 total posts
Name:
LB
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Re: Question about paying off credit cards
Posted by Ginger123
best thing to do is consolidate.... check into taking a personal loan from your bank to consolidate and have one low apr payment a month
actually that's only a good idea if you are really struggling - you basically need to declare bankruptcy to do that. i looked into consolidating and was advised not to if i could afford to pay them off one by one.
definitely put ALL your extra money into the card with the highest APR - the finance charges on the other cards will probably be less than the finance charges on the first card anyway, so your money will work more efficiently that way.
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| Posted 11/2/07 1:52 PM |
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JRG71
*****************
Member since 5/05 5025 total posts
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Re: Question about paying off credit cards
We paid off the cards with the highest interest rates first. Because I had so many... I combined the lower interest rates with balance transfers... and because I did that I was getting more cards with lower interest rates.. and continued to transfer to lower interest cards. I have no credit card debt now. 
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| Posted 11/2/07 1:57 PM |
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TreAnt427
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Member since 8/06 8652 total posts
Name:
Tracy
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Re: Question about paying off credit cards
We are currently concentrating on paying off one CC, for the others we have a set amount that get automatically paid out of our checking account. It is more than the min balance though.
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| Posted 11/2/07 2:08 PM |
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BabyAvocado
Happy New Year
Member since 5/05 17334 total posts
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Re: Question about paying off credit cards
The minimum payment is ALL finance charge plus a very small amount toward your actual balance. So try to pay a little more than the minimum while making bigger payments on the other card so that you are at least making a dent in the others.
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| Posted 11/2/07 2:13 PM |
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Ginger123
Sooo happy
Member since 8/07 1235 total posts
Name:
dana
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Re: Question about paying off credit cards
Posted by headoverheels
Posted by Ginger123
best thing to do is consolidate.... check into taking a personal loan from your bank to consolidate and have one low apr payment a month
actually that's only a good idea if you are really struggling - you basically need to declare bankruptcy to do that. i looked into consolidating and was advised not to if i could afford to pay them off one by one.
definitely put ALL your extra money into the card with the highest APR - the finance charges on the other cards will probably be less than the finance charges on the first card anyway, so your money will work more efficiently that way.
you absouloutly do not have to declare bankrupcty to get a personal loan from your bank... they want your biz as much a credit card does ...consolidating by an outside vendor is a completely different subject which is not what I was suggesting..sorry if i was not clear..
bottom line go to your bank like citi and apply for a personal loan , if you are approved with a lower apr than your credit than take the loan pay off credit cards and then you have only one bill with a lower apr ....
Message edited 11/2/2007 2:16:22 PM.
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| Posted 11/2/07 2:14 PM |
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DmarieK
My loves!!
Member since 1/06 9203 total posts
Name:
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Re: Question about paying off credit cards
Posted by luckysmom
ALWAYS pay more than the minimum, otherwise you are paying of mostly finance charges. Especially if you have a higher balance.
I always do now...I just don't know if I should take that extra $ and put it towards the higher interest rate cards while i'm trying to pay down.
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| Posted 11/2/07 2:28 PM |
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DmarieK
My loves!!
Member since 1/06 9203 total posts
Name:
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Re: Question about paying off credit cards
Posted by Ginger123
best thing to do is consolidate.... check into taking a personal loan from your bank to consolidate and have one low apr payment a month
I would love to do this but don't think I would get one because of what I owe on my cards.
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| Posted 11/2/07 2:29 PM |
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Ginger123
Sooo happy
Member since 8/07 1235 total posts
Name:
dana
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Re: Question about paying off credit cards
even if you cant get a personal loan or the entire amount try to wipe out some of the hight apr debt by taking out a smaller loan
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| Posted 11/2/07 3:45 PM |
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JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
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Re: Question about paying off credit cards
Just the minimum. Out anything additional you were going to pay toward the one with the highest rate. it helps you pay them off faster in the end.
ETA: yeah you're mainly paying itnerest when you pay the minimum, but it doesn't matter.paying an extra $50 on the card witha 10% interest rate is $50 more you're paying at the 20% interest rate. it's always better to get rid of the higher interest rate debt first. i know it's hard. I always find myself wanting to pay more to the lower rate cards, but in the end it actually does work out better to pay any amount over the minimum to the highest rate card.
Message edited 11/2/2007 5:29:07 PM.
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| Posted 11/2/07 5:17 PM |
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Katie111806
Team Pink!
Member since 12/06 5349 total posts
Name:
Katie
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Re: Question about paying off credit cards
I've read a lot about this subject since we are in the same boat. There are a lot of different theories but think the best route to go is pay off the highest interest rate first, paying as much as you can above the minimum each month. Then, pay the minimum only on all of the others. You will see the impact much quicker if you focus on one at a time.
There are other thoughts on paying them based on the balance versus the interest rate...if you want additional info, FM me.
HTH!
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| Posted 11/2/07 6:03 PM |
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