Paying off credit cards

**boysnberries** · 02-23-2009, 11:27 AM

What is the best way to pay off credit cards? I have 2 large ones that I need to deal with. One I could pay off entirely when our tax return comes in. Should I pay that one off then negotiate with the larger debt, or should I divide the money between the two?

Thanks in advance for any insight!

**homesteadmamma** · 02-23-2009, 11:42 AM

If it was me, I would pay off the one you can, then immdiately snowball that payment onto your other debt.

**Greebo** · 02-23-2009, 11:48 AM

Originally Posted by boysnberries

What is the best way to pay off credit cards? I have 2 large ones that I need to deal with. One I could pay off entirely when our tax return comes in. Should I pay that one off then negotiate with the larger debt, or should I divide the money between the two?

Thanks in advance for any insight!

Why would you negotiate on the larger debt? Are you unable to make your payments otherwise?

**BlessedMomof2** · 02-23-2009, 02:05 PM

I would pay off the one I could and immediately start snowballing onto the next one.

Good Luck with your decision.

**rainbowgc** · 02-23-2009, 04:07 PM

Pay off as much as you can to the one with the highest interest rate.
Then snowball the next one.

**Debbie-cat** · 02-23-2009, 04:26 PM

I agree with rainbowgc!

**Buckeye5** · 02-23-2009, 06:05 PM

First do you have $1000 in an emergency fund and are you current on all your bills?? That would be the first thing I would do. then put the rest on your smallest credit card, and elminate it, then on to the next one. Keep putting extra on it until it is paid for.

**boysnberries** · 02-23-2009, 06:18 PM

Thanks for your responses.

Originally Posted by Greebo

Why would you negotiate on the larger debt? Are you unable to make your payments otherwise?

I was late on one payment recently (in 8 years), and we just missed a payment because we were expecting our tax return, but when dh e-filed he had a typo on the bank acct. info, so now we are waiting for the bank rejection to get to the IRS (why, in the day and age of computers, does it take up to 3 weeks?!!!!), then they'll send out a check (another 2 week wait). Anyhow, that's why I'd try to negotiate- I'm sure our interest rate will go up because of the recent events, so I'd try to see if I could negotiate the rates down (trying to be optimistic here).

**phoeny_moonstar** · 02-24-2009, 01:47 AM

I agree with almost everyone else. Pay off the smaller of the two and snowball that payment to the bigger one. IMHO.

**Scattymum** · 02-24-2009, 06:28 AM

id pay the smaller one and snowball the payment, that way one of them is completely GONE!

**lmbaker520** · 02-24-2009, 07:36 AM

I am with everyone else...pay off the smallest and snowball the payment for the larger one. This is as long as you are current on all of your other bills.

**Judi Dial** · 02-24-2009, 08:16 AM

I'd probably pay the small one off and then snowball it too. There's a debt calculator you can use that CNN Money has that can show you what you'll pay when and how long it will take to pay them off. Or, myfico.com has software you can buy that supposedly will show how whatever you do will change your FICO score, but it's around $50...

The CNN money calculator can be found here:

http://cgi.money.cnn.com/tools/debtp...ebtplanner.jsp

IHTH!

Judi

**Greebo** · 02-24-2009, 08:27 AM

Originally Posted by boysnberries

I was late on one payment recently (in 8 years), and we just missed a payment because we were expecting our tax return, but when dh e-filed he had a typo on the bank acct. info, so now we are waiting for the bank rejection to get to the IRS (why, in the day and age of computers, does it take up to 3 weeks?!!!!), then they'll send out a check (another 2 week wait). Anyhow, that's why I'd try to negotiate- I'm sure our interest rate will go up because of the recent events, so I'd try to see if I could negotiate the rates down (trying to be optimistic here).

Ah, I see - I thought you were trying to negotiate the balance owed down. My mistake.

**MomToTwoBoys** · 02-24-2009, 08:59 PM

What are the debt amounts and interest rates on those debts?

**kmonokwe** · 02-25-2009, 02:59 PM

First of all, get current with both debts. If possible, do it before your tax return comes. If not, tell the collectors to shove it. But once the tax return comes, I'd divy it up: if your current budget can still handle both payments, I'd pay off one and snowball the other (as others have said). Keep paying both payments, but send them both to the one remaining card.

It sounds like your budget is stable, but there have been some miscommunications recently. Get up to date, and start kicking those creditors out of the house!