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Does it make sense to pay off the smaller debt first or attack the bigger debt?

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    Does it make sense to pay off the smaller debt first or attack the bigger debt?

    I'm supposed to get $1300 bonus in June and was wondering does it make more sense to pay off the $600 card first and then attack the $2700 debt? Or do I attack the $2700 first and worry about the card with the $600 balance later?

    One scenario will have me with $0 balance and around $2000 left in debt

    Other scenario will have me with $350 debt on one card and $1700 left in debt

    #2
    What are the interest rates? Pay off the highest rate first.
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

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      #3
      I would need more info like monthly payment for each credit card and current interest rate. and not just the minimum payment, what you are actually paying each month.

      For simplicity, I would pay off the $600 card and move on to the $2700.

      If it were my debt, I would probably put the bonus money towards the $2700 card first b/c that would most likely have a higher monthly interest charge; and I don't like interest or debt.

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        #4
        I would start with the one you owe $800 on.

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          #5
          Originally posted by disneysteve View Post
          What are the interest rates? Pay off the highest rate first.
          $40 interest a month for discover. $7 interest for Amex

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            #6
            Originally posted by saver17 View Post
            $40 interest a month for discover. $7 interest for Amex
            No. What are the interest rates? You want to pay the highest rate first.
            Steve

            * Despite the high cost of living, it remains very popular.
            * Why should I pay for my daughter's education when she already knows everything?
            * There are no shortcuts to anywhere worth going.

            Comment


              #7
              Originally posted by disneysteve View Post
              No. What are the interest rates? You want to pay the highest rate first.
              Discover is 24% and Amex is 16%

              Comment


                #8
                If its enough to pay off the highest rate debt, then pay that off. If not, pay off the smallest debts and then make bigger monthly payments on the remaining debts. You should have more money to pay off the remaining debts because you got rid of the other monthly payments.
                Youtube Channel: https://www.youtube.com/channel/UCbV...5W56pRkf4EM6XA

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                  #9
                  Originally posted by saver17 View Post
                  Discover is 24% and Amex is 16%
                  Then pay off Discover first.
                  Steve

                  * Despite the high cost of living, it remains very popular.
                  * Why should I pay for my daughter's education when she already knows everything?
                  * There are no shortcuts to anywhere worth going.

                  Comment


                    #10
                    saver17, do you actually even know how much debt you really have?

                    When you first came to this site on 3/28, you said that your credit card debt was $2,400. A few days later, you said it was $2,500.

                    Then you mentioned that you have a $1,000 medical debt in collections and another medical debt that you were paying on that was down to $206 as of 4/3.

                    Then you threw in the fact that you defaulted on an $800 credit card bill in the past.

                    Now, in this thread, you're saying that your credit card debt is $3,300. How did it go from $2,400 a month ago to $3,300 now?

                    You also said your plan was to pay off the credit card debt by July 1, but now you're saying that after you get the bonus you hope to receive in June, you will still owe $2,000. So it doesn't sound like you will be paid off by July 1. And that's with this potential bonus. If the bonus doesn't happen or isn't as large as expected, you'll be even worse off.

                    Your story changes every time you start a new thread. And the amounts owed keep rising as you tell more of your story.
                    Steve

                    * Despite the high cost of living, it remains very popular.
                    * Why should I pay for my daughter's education when she already knows everything?
                    * There are no shortcuts to anywhere worth going.

                    Comment


                      #11
                      Originally posted by commoncentsmike View Post
                      If its enough to pay off the highest rate debt, then pay that off. If not, pay off the smallest debts and then make bigger monthly payments on the remaining debts. You should have more money to pay off the remaining debts because you got rid of the other monthly payments.
                      I didn;t think about it like that, very good point

                      Comment


                        #12
                        Originally posted by disneysteve View Post
                        saver17, do you actually even know how much debt you really have?

                        When you first came to this site on 3/28, you said that your credit card debt was $2,400. A few days later, you said it was $2,500.

                        Then you mentioned that you have a $1,000 medical debt in collections and another medical debt that you were paying on that was down to $206 as of 4/3.

                        Then you threw in the fact that you defaulted on an $800 credit card bill in the past.

                        Now, in this thread, you're saying that your credit card debt is $3,300. How did it go from $2,400 a month ago to $3,300 now?

                        You also said your plan was to pay off the credit card debt by July 1, but now you're saying that after you get the bonus you hope to receive in June, you will still owe $2,000. So it doesn't sound like you will be paid off by July 1. And that's with this potential bonus. If the bonus doesn't happen or isn't as large as expected, you'll be even worse off.

                        Your story changes every time you start a new thread. And the amounts owed keep rising as you tell more of your story.

                        That medical balance is not part of this. I will take care of that in the summer

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                          #13
                          Originally posted by saver17 View Post
                          That medical balance is not part of this. I will take care of that in the summer
                          You didn't answer the question. You originally said you owed $2,400 on the credit cards but now say it is $3,300. That's a big difference. What happened?
                          Steve

                          * Despite the high cost of living, it remains very popular.
                          * Why should I pay for my daughter's education when she already knows everything?
                          * There are no shortcuts to anywhere worth going.

                          Comment


                            #14
                            Originally posted by disneysteve View Post
                            You didn't answer the question. You originally said you owed $2,400 on the credit cards but now say it is $3,300. That's a big difference. What happened?
                            Originally I was just talking about discover since Amex was so low

                            Comment


                              #15
                              Originally posted by saver17 View Post
                              Originally I was just talking about discover since Amex was so low
                              Oh. So you didn't think nearly 1/3 of your credit card debt was worth mentioning. Gotcha.

                              If you are seeking advice (which I realize you aren't), it helps to tell the whole story. With limited information, the answers you gets to any questions won't be accurate.
                              Steve

                              * Despite the high cost of living, it remains very popular.
                              * Why should I pay for my daughter's education when she already knows everything?
                              * There are no shortcuts to anywhere worth going.

                              Comment

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