Posted on
January 27, 2009
at
1:46 pm
I am getting $3100 back on my taxes and I want to know the best way to pay down some debt. Which looks better to creditors?
Card1 $3750 limit $4000
Card2 $5999 limit $7500
Card3 $999 limit $5000
Card4 $2095 limit $2500 Should I take the $3100 and pay off Card3 and Card4 or should I pay down Card2 or Card1 to get the balance far away from my credit limit. What are your guys' advice. I appreciate it!
Posted on
March 1, 2009
at
9:13 am
I'd personally opt to clear the two smallest ones and CLOSE the accounts. Don't leave the limits open or you might find temptation gets the better of you and the cycle begins again. Then set a plan to put the payments you were paying on thoe closed accounts onto the next balance in the line and get rid of that one too. This should be a good opportunity for you to reduce debt and learn new spending habits.
Posted on
March 1, 2009
at
2:43 pm
Pay them but don't close them. This way your credit to expense ratio will improve resulting in a better credit score. However, DON'T use them once you pay them off. That will reverse your positive action.
Posted on
March 24, 2009
at
10:52 pm
That last point is a really good idea. I paid off some small balances and rolled that into a snowball effect and used the monthly payment I had been using for one card to pay more on another card.
Posted on
March 29, 2009
at
2:32 pm
I think it depends on the creditor some are more picky than others. some take an effort as a good showing of how you are.
Posted on
April 1, 2009
at
3:45 pm
Most definitely 3&4. Think how relieved you"ll be having two less payments going out each month.
Posted on
April 1, 2009
at
5:24 pm
nice info, thank you for sharing
Posted on
April 6, 2009
at
12:42 am
I would pay off the two smaller bills and cancel them. Once you've paid them off you don't need the temptation of a zero balance.
Posted on
April 6, 2009
at
6:35 am
Pay only the minimum balance on each of those credit cards (all of them) and then put the rest of that money in a savings account. And make a resolution to yourself to "not" use the credit cards...just pay them down until the economy improves, which will more than likely be 2015.
