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How to tackle credit cards

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    If you do come back good luck! By the way I'm thinking that maybe the answer is don't pay the mortgage for 4 months. Then pay off all CC, then you'll be behind like $15k on the mortgage and maybe they will take the opportunity to recast it and just integrate it into your loan. I'm not saying this is the answer but it could help short term.

    Long term help is a different issue.
    LivingAlmostLarge Blog


      Originally posted by sigamy View Post

      I have two credit cards, both with balances. These were used over past few years for general household expenses and some remodeling projects.
      Card 1: 2600 balance
      Card 2: 4800 balance

      I will be coming into some extra money soon. I will use some of it for $1000 emergency fund. Then I'd like to apply the rest to pay off at least one CC.

      My question: Will it help my credit score if I pay $2600 on Card 2, then use Card 2 to pay off Card 1? Is this a good strategy? If yes, how long should I wait before paying off Card1? Like one month? two?
      Or does this not matter? Should I just pay off Card 1 directly and immediately?

      Any help is appreciated.
      great that you will have 1k EF.

      I recommend paying off Card 1. Cut it up (or don’t use it).

      then focus on card 2 using actual money; don’t play a shell game with debt.

      once you get this in order your credit score will reflect these actions.

      good luck.


        We were in 5x more CC debt than you have, plus car note and mortgage.

        The only way to get out and stay out of debt are to:
        1. Know where all of your money is going (use a debit card for everything and then analyze your spending), and
        2. live below your means (knowing that if you make a good salary you can live below your means without needing to be frugal; just don't be extravagant).
        Once we knew where our money was going, we could cut obvious (and non-obvious) waste, make -- and stick to -- a reasonable but below our means budget and throw all the remaining cash at the debt.

        But both of you must be committed to this. Otherwise, even if you pay off these cards, you'll be back in debt sooner than you can imagine.


          using credit card for rewards and having to carry balance is dumb. well maybe ignorant. Dumb isn't nice

          If you can't control spending, probably better to cut all the cards except one, then start paying them all off once by one. Having one card is helpful in case of dire emergencies and for certain types of online shopping. Being able to chargeback on uncooperative merchants is helpful.

          The amount of cards you have is largely irrelevant, it's more the utilization that matters. I have a bunch of cards and probably over 100k in available credit, but my recurring personal expenses might be $700-1000/month which I pay off easily.


            For you to get out of debt and stay out of debt, you need to address the behaviors that got you in the hole in the first place. I agree that setting aside about $1,000 for emergencies is the right first step. But after that, here's what makes the most sense to me: If one card has a much higher interest rate than the other, start by putting any extra money toward that debt. If the interest rates are about the same, put that money toward the smaller balance to get rid of it as fast as possible. Once your first card is fully paid off, you'll have even more extra money (that would've gone toward the paid card) to help pay off the other one. While you're doing all this, try to eliminate unnecessary spending and don't add to your credit card debt. And please don't use one credit card to pay the other one off--that's the sort of thing that keeps the debt cycle going!