Posted on
November 6, 2007
at
2:30 pm
I would focus on the card with the highest interest rate. That'll give you more money to work with in the end to put toward the smaller bills.
Posted on
November 6, 2007
at
2:30 pm
It seems I cant understand why do I need to pay off first the credit card with the lowest interest rate? And leave the highest one. I get what does coconut mean. He's right if I paid off the lowest interest rate first I'll get to pay off that card in no time. After paying the smaller interest rate I will need to work on more money to pay the highest rate.
Posted on
November 6, 2007
at
2:30 pm
i think that angle is doing the reverse. its more logical to pay off the debt with the highest interest rate because its the one hurting you most
Posted on
November 6, 2007
at
2:30 pm
In my case, I should find a way to reduce the accumulation of interest because that will pile up and make me difficult to cope later. I will reduce my unnecessary spendings and allot that for the payment of debts.
Posted on
November 6, 2007
at
2:30 pm
Paying off the highest interest rate card first makes the most financial sense, but there are other reasons for not attacking that card first.
The OP is not paying off the card with the lowest rate first, but the one with the lowest balance. This is a big psychological boost. You can celebrate, have a 'cutting of the card' ceremony, and really get a sense of accomplishment.
Also, if you sometimes miss payment deadlines because you have a lot to keep track of, this reduces by one the number of late payment fees you can be charged.
This doesn't apply if your cards all have close to the same balance. Then you should hit the highest interest rate card first.
Posted on
November 6, 2007
at
2:30 pm
it's a useful way to get out of the debt, i will try it and congratulation.
Posted on
November 6, 2007
at
2:30 pm
I would take and pay off cards with the highest interest rate first, and pay on the smaller ones so the bill won't get to high.
Posted on
November 6, 2007
at
2:30 pm
I would also take the route of spreading all my available funds to cover all the minimum payment requirements of my credit her to avoid my cards getting blocked which may redound later to legal action.
Posted on
November 6, 2007
at
2:30 pm
I have had some friends in debt problems and I have talked to them about it and have found that paying the card with the highest rate works best. Although you must make the minimum payments on the others to avoid late charges and other charges.
Posted on
November 6, 2007
at
2:30 pm
I understand how you feel accomplished once you pay off a card because you are lowering the number of sources of debt. If this is keeping you going psychologically then stick with it, as long as you understand that this is not the best way to pay off debt. You'll ultimately pay more money out in the long run if you don't focus on higher interest first.
