What would you pay off first???

**Izzy0906** · 07-27-2007, 09:46 AM

Ok, What order would you pay off the following debt? Recently, I've been putting a few extra bucks to EVERY bill (except mortgage and car loan) and would like to know if that's a good idea or if I should be paying minimum on all but one at a time. if so, in what order would you pay these off?

CC1 Debt Start $2,959.70 16.18%
CC2 Debt Start $289 6.9%
Car Loan Start $7,050 8.9% $145 Paid (new loan)
Personal Loan $4,756/Paid $0 (I am required to pay $100/month starting Aug.)

**Radish4ever** · 07-27-2007, 09:55 AM

If it were me, I'd probably pay off the smallest debt (cc2) first just to see some quick progress! Then I'd pay off CC1, Personal Loan, and then the Car

**frugalfarmwife** · 07-27-2007, 09:57 AM

I agree with the above, even though the smaller loan has a lower interest amount you can knock it out quickly, have the satisfaction of having it GONE and then apply the money you were using to pay it to the larger CC.

kj

**mommy4ever** · 07-27-2007, 10:00 AM

I'd pay in the same order. Maintain your current minimum payments on everything. Ie. This months payment is $120. Budget to pay $120 from now until you snowball it. so you are paying a little more principal on all of them. When you payoff CC2, take that monthly payment and pay it to CC1 along with the CC1 payment and whatever extra you can pay. Then when you get to the personal loan, you roll all what you were paying on cc2 on to what you have already been paying on the loan. etc.

**Buckeye5** · 07-27-2007, 10:02 AM

Get an emergency fund of $1000 in place first, then smallest bill to the largest.

**Mom23boys** · 07-27-2007, 10:39 AM

I would pay off the smallest, C2 Debt Start $289 6.9%, and work my way up to the largest.

**Jenna** · 07-27-2007, 10:46 AM

Originally Posted by Izzy0906

CC1 Debt Start $2,959.70 16.18%
CC2 Debt Start $289 6.9%
Car Loan Start $7,050 8.9% $145 Paid (new loan)
Personal Loan $4,756/Paid $0 (I am required to pay $100/month starting Aug.)

I would try to get a 0% BT offer from a current c/c or a new c/c. It takes discipline, and you have to read the fine print - but good offers can still be found. Does CC2 have any BT offers?

Or, will CC1 lower the APR?

**Izzy0906** · 07-27-2007, 11:01 AM

Don't you have to have available credit on the card to transfer the balance? CC2 only has a credit limit of $300.

**lisettelovebug** · 07-27-2007, 11:03 AM

Someone posted a link to a site a few weeks ago on here about snowballing. You entered all your info about your debts and it told you how much you would pay in interest if you did it by highest interest first or by lowest balance.
I'm not sure of the site.... Maybe someone could repost it? I'd like it again, since I thought I put it in my favorites but it's not there...

I know with my debt if I did it by smallest debt first I would be paying $28 more in interest than if I started with the highest interest paying extra and just doing minimums. I know I could use that $28 for other things!!

Lisette

**Izzy0906** · 07-27-2007, 11:32 AM

I'd love that site if anyone has it! Thanks for the info!

**lisettelovebug** · 07-27-2007, 12:00 PM

I would see about getting rid of that high interest rate credit card! THat is awful. Does your lower credit card have any room on it? or can you maybe see if you can apply for another one with better percentage. THat is awful - almost as bad as the department store cards. If you can get a cc with a better fixed rate than that, DO IT!! and then, depending on how long you had the cc, you can either close the account (if you haven't had it very long and it won't hurt credit) or you can just shred it or hide it away somewhere at home. THat way you're not tempted to use it,and now you have 3 cards...
If transferring balance isn't possible, I would say make minimums on everything else and get that paid down.
Save your change, take back cans for deposit (if state does this), have a yardsale, save all you can and put it towards that debt first.
If you have bill pay through your bank - use it. My bills are always paid on time, no paying for stamps, I can change the amount or date anytime before it's scheduled and with mine you can do weekly, every other week, bimonthy, monthly, biyearly, etc. It's great. figure out how much you want / can pay extra a month (say like $40) and send either a monthly payment or like I do is I send weekly payments - $10 a week doesn't hurt as much!!!
And if you don't have one, make a budget!! http://budgetsimple.com/index.html
Lisette

**Izzy0906** · 07-27-2007, 12:17 PM

Thank you for all the info. Yes I have a budget and follow it religiously. This credit card is from last year. I refuse to get anymore after this! lol

**LexTysMommy** · 07-27-2007, 12:44 PM

There is a website that you can type in all credit cards, loans, money owed, and the interest rate and they give you advice what to pay first. You can record all your income, and how much you have extra a month to put tpwrds debt adn they will give you dates, and how much to pay when.

Good luck!
http://aol1.bankrate.com/aol/calsyst...n/default.aspx

**Luv2BeFrugal** · 07-27-2007, 01:35 PM

Originally Posted by Radish4ever

If it were me, I'd probably pay off the smallest debt (cc2) first just to see some quick progress! Then I'd pay off CC1, Personal Loan, and then the Car

I agree with her