| Posted By |
Message |
TiggerBounce
The Prince & Princess
Member since 7/05 4939 total posts
Name:
J
|
WWYD (money question)
DH and I choose different things we should do with our tax return. These are hypothetical #S.
Credit card # 1 has $8,000 balance w/ 9.99% APR
Credit Card #2 has $13,000 balance w/ 14.9% APR
Home Equilty Line of Credit (NOT IN YOUR NAME) $40,000 at current rate of 3.25%
WWYD with tax return of $10,000, and why.
|
Posted 2/28/09 9:32 AM  |
| |
|
babymakes3
Almost there!
Member since 7/06 7376 total posts
Name:
|
Re: WWYD (money question)
I'd put it all in credit card #2.
|
| Posted 2/28/09 9:42 AM |
| |
|
KPtoys
I'm getting old
Member since 5/05 8688 total posts
Name:
Karen
|
Re: WWYD (money question)
Posted by babymakes3
I'd put it all in credit card #2.
I would too
|
| Posted 2/28/09 9:43 AM |
| |
|
JC621
LIF Adolescent
Member since 8/08 616 total posts
Name:
JC
|
Re: WWYD (money question)
Posted by KPtoys
Posted by babymakes3
I'd put it all in credit card #2.
I would too
Me too, you'd have the card w/the highest interest rate almost paid off.
|
| Posted 2/28/09 9:45 AM |
| |
|
FranM
And so it goes....
Member since 9/05 2217 total posts
Name:
|
Re: WWYD (money question)
absolutely agree - why would you want to continue to carry the highest interest rate cc. That should be the #1 priority for pay down.
|
| Posted 2/28/09 10:44 AM |
| |
|
TheWhiteRabbit
Thru the rabbit hole!
Member since 7/06 4412 total posts
Name:
|
Re: WWYD (money question)
I would pay off CC 1 put the rest to 2.
Here's why:
You have paid off CC1. You now have the money you used to pay them to use towards CC2 (otherwise if you pay to CC2, you still have two credit cards you are making payments on).
CC1 doesn't want to lose your business, they will probably send a balance transfer offer or you can call and ask for one. CC1 has a lower apr, and usually do good deals on transfer offers.
Transfer the remainder of #2 to a lower interest rate card and put the minimum payment you were paying from CC1 together with what you are paying on CC2 together now can be paid all to #2.
I did it and the "CC1" company offered me ZERO percent on my transfer. I paid of CC2 really quickly.
|
| Posted 2/28/09 12:28 PM |
| |
|
pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
|
Re: WWYD (money question)
Posted by KittyTheStray
I would pay off CC 1 put the rest to 2.
Here's why:
You have paid off CC1. You now have the money you used to pay them to use towards CC2 (otherwise if you pay to CC2, you still have two credit cards you are making payments on).
CC1 doesn't want to lose your business, they will probably send a balance transfer offer or you can call and ask for one. CC1 has a lower apr, and usually do good deals on transfer offers.
Transfer the remainder of #2 to a lower interest rate card and put the minimum payment you were paying from CC1 together with what you are paying on CC2 together now can be paid all to #2.
I did it and the "CC1" company offered me ZERO percent on my transfer. I paid of CC2 really quickly.
I agree completely. Pay off #1 and put the rest to #2. Then what you used to pay to #1, put towards #2 going forward
|
| Posted 2/28/09 12:44 PM |
| |
|
ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
|
Re: WWYD (money question)
If you don't plan on doing any balance transfers... pay off #2.
Paying off the lower APR card first, just to "have payments going from that card into your next card" doesn't make any sense mathematically.
Even if you are paying two cards at the same time, you are still applying principal payments towards both so your fine.
|
| Posted 2/28/09 4:16 PM |
| |
|
KateDevine
*
Member since 6/06 24950 total posts
Name:
|
Re: WWYD (money question)
Posted by ave1024
If you don't plan on doing any balance transfers... pay off #2.
Paying off the lower APR card first, just to "have payments going from that card into your next card" doesn't make any sense mathematically.
Even if you are paying two cards at the same time, you are still applying principal payments towards both so your fine.
But she won't pay off #2 with the return she is getting.
I agree with Kitty
|
| Posted 2/28/09 4:20 PM |
| |
|
SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
|
Re: WWYD (money question)
you're paying $162 a month in interest on the 2nd CC.
put the $10k towards that one
Message edited 2/28/2009 4:24:21 PM.
|
| Posted 2/28/09 4:23 PM |
| |
|
Christine
2nd verse same as the 1st
Member since 5/05 15287 total posts
Name:
|
Re: WWYD (money question)
Posted by KateDevine
Posted by ave1024
If you don't plan on doing any balance transfers... pay off #2.
Paying off the lower APR card first, just to "have payments going from that card into your next card" doesn't make any sense mathematically.
Even if you are paying two cards at the same time, you are still applying principal payments towards both so your fine.
But she won't pay off #2 with the return she is getting.
I agree with Kitty
but if she pays off #1 she's left with the higher balanced card with a higher interest rate. sure, it will get paid down faster since she can add the cc1 payment to cc2 but it still results in more interest expense.
|
| Posted 2/28/09 4:27 PM |
| |
|
|
|
Re: WWYD (money question)
Posted by KittyTheStray
I would pay off CC 1 put the rest to 2.
Here's why:
You have paid off CC1. You now have the money you used to pay them to use towards CC2 (otherwise if you pay to CC2, you still have two credit cards you are making payments on).
CC1 doesn't want to lose your business, they will probably send a balance transfer offer or you can call and ask for one. CC1 has a lower apr, and usually do good deals on transfer offers.
Transfer the remainder of #2 to a lower interest rate card and put the minimum payment you were paying from CC1 together with what you are paying on CC2 together now can be paid all to #2.
I did it and the "CC1" company offered me ZERO percent on my transfer. I paid of CC2 really quickly.
This is what I would do.
|
| Posted 2/28/09 6:12 PM |
| |
|
Peainapod
Peanuts are here!
Member since 1/09 13591 total posts
Name:
Diana
|
Re: WWYD (money question)
I would pay off # 1, and then transfer the balance of # 2 to the first one with the lower interest rate.
Then take the remainder and put that towards the balance you transferred.
|
| Posted 2/28/09 6:21 PM |
| |
|
EmmaNick
*
Member since 12/06 16001 total posts
Name:
*
|
Re: WWYD (money question)
NM, I can't do math 
I would pay off 1 and put the rest toward 2.
Message edited 2/28/2009 6:34:53 PM.
|
| Posted 2/28/09 6:29 PM |
| |
|
TheWhiteRabbit
Thru the rabbit hole!
Member since 7/06 4412 total posts
Name:
|
Re: WWYD (money question)
Posted by ave1024
Paying off the lower APR card first, just to "have payments going from that card into your next card" doesn't make any sense mathematically.
Yeah, that's why you have to do the balance transfer part - then it makes LOTS of mathematical sense 
|
| Posted 2/28/09 7:00 PM |
| |
|
lovemy2boys
LIF Adult
Member since 10/07 3915 total posts
Name:
|
Re: WWYD (money question)
Posted by KittyTheStray
I would pay off CC 1 put the rest to 2.
Here's why:
You have paid off CC1. You now have the money you used to pay them to use towards CC2 (otherwise if you pay to CC2, you still have two credit cards you are making payments on).
CC1 doesn't want to lose your business, they will probably send a balance transfer offer or you can call and ask for one. CC1 has a lower apr, and usually do good deals on transfer offers.
Transfer the remainder of #2 to a lower interest rate card and put the minimum payment you were paying from CC1 together with what you are paying on CC2 together now can be paid all to #2.
I did it and the "CC1" company offered me ZERO percent on my transfer. I paid of CC2 really quickly.
ITA with this
|
| Posted 3/1/09 8:32 AM |
| |
|
MSeid
LIF Adolescent
Member since 11/05 805 total posts
Name:
|
Re: WWYD (money question)
I would find a card out there with 0% APR Intro rate for 1 year and consolidate both debts onto one card with a much lower rate. Pay 10K towards that one balance.
Try to get debts consolidated at a lower rate so you are paying only ONE balance. GOOD LUCK
Message edited 3/1/2009 9:16:14 AM.
|
| Posted 3/1/09 9:15 AM |
| |
|
nrthshgrl
It goes fast. Pay attention.
Member since 7/05 57538 total posts
Name:
|
Re: WWYD (money question)
Posted by MSeid
I would find a card out there with 0% APR Intro rate for 1 year and consolidate both debts onto one card with a much lower rate. Pay 10K towards that one balance.
Try to get debts consolidated at a lower rate so you are paying only ONE balance. GOOD LUCK
This is what I'd try.
Before I was left with a high balance & a high interest rate, I'd want to make sure that I can transfer the balance.
While cc#1 may offer you a 0% transfer, depending on your previous credit, they may not. I'd want that guaranteed.
|
| Posted 3/1/09 9:36 AM |
| |
|
lbelle821
Arghhhhh
Member since 2/06 5285 total posts
Name:
Lisa
|
Re: WWYD (money question)
Posted by nrthshgrl
Posted by MSeid
I would find a card out there with 0% APR Intro rate for 1 year and consolidate both debts onto one card with a much lower rate. Pay 10K towards that one balance.
Try to get debts consolidated at a lower rate so you are paying only ONE balance. GOOD LUCK
This is what I'd try.
Before I was left with a high balance & a high interest rate, I'd want to make sure that I can transfer the balance.
While cc#1 may offer you a 0% transfer, depending on your previous credit, they may not. I'd want that guaranteed.
I agree with this...absent any guarantees that a 0% card will show up I would pay of the higher interest rate first. But totally agree that a 0% balance transfer card is the way to go if you can get it.
|
| Posted 3/1/09 9:55 AM |
| |
|
MissJones
I need a nap!
Member since 5/05 22134 total posts
Name:
|
Re: WWYD (money question)
Posted by Mikismom
Posted by KittyTheStray
I would pay off CC 1 put the rest to 2.
Here's why:
You have paid off CC1. You now have the money you used to pay them to use towards CC2 (otherwise if you pay to CC2, you still have two credit cards you are making payments on).
CC1 doesn't want to lose your business, they will probably send a balance transfer offer or you can call and ask for one. CC1 has a lower apr, and usually do good deals on transfer offers.
Transfer the remainder of #2 to a lower interest rate card and put the minimum payment you were paying from CC1 together with what you are paying on CC2 together now can be paid all to #2.
I did it and the "CC1" company offered me ZERO percent on my transfer. I paid of CC2 really quickly.
I agree completely. Pay off #1 and put the rest to #2. Then what you used to pay to #1, put towards #2 going forward
I agree too. You'll get rid of one card and have the chance to get a lower APR on the second.
|
| Posted 3/1/09 11:39 AM |
| |
|
Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
|
Re: WWYD (money question)
If you pay off the highest interest card first, you save about $750 over 26 months, if you pay ~$500 a month to the companies.
If you can get a 0% CC that would be great (although I know those letters have pretty much ceased coming to our house and we have very good credit.) - you would save about $1500, but factoring in the balance transfer fee, about 1100-1200.
a more liekly scenario is that you can get 3.9 you would still save 700 (after the balance transfer fee).
|
| Posted 3/1/09 12:00 PM |
| |
|
Tabitha
Member since 2/07 2029 total posts
Name:
|
Re: WWYD (money question)
i would put it towards the 2nd card
|
| Posted 3/1/09 12:05 PM |
| |
|
