Help - your opinion on my CC debt?

**Happy Dope** · 09-05-2010, 05:38 PM

Hey everyone

Can I get some advice/suggestions for my credit card debt and what you would do?

Here's what I have:

Card #1
Balance: $1209.75, but just paid $100.00 on 8/24/10
APR: 9.9%
Interest this cycle: $6.92

Card #2
Balance: $1,568.39, but just paid $100.00 on 8/19/10
APR: 9.9%
Interest this cycle: $9.56

Card #3
Balance: $844.88, but just paid $100.00 on 9/2/10
APR: 15.9%
Interest this cycle: $11.79

Card #4
Balance: $828.84
APR: 9.9%

Card #5
Balance: $4,422.21, but just paid $200.00 on 9/2/10
APR: 15.9%
Interest this cycle: $54.55

So, how should I handle this? Pay off largest first? Smallest first? I'm so lost... which is probably why I haven't been debt-free since I was a teenager!

Any and all advice is helpful

**ladytoysdream** · 09-05-2010, 06:04 PM

Me, I would start with card #3 to pay off. Then go after card # 4. As you pay off one, use that old payment in a snowball to go after the next one. Then card 2 and then 1. I would leave the # 5 card till the last because the balance is so big. I know it has big interest compared to the other ones though. Keep paying on all the other cards as you take aim on the first one.
It gives you motivation as you pay each one off. So the smaller ones would be where to start.

**Happy Dope** · 09-05-2010, 06:12 PM

Oops... just checked online account. Card #4 should actually be $1228.84.

**Momto5RN** · 09-05-2010, 06:15 PM

i think it depends on what will best motivate you .
for some it means paying off highest interest first

others prefer to pay off smaller balances first that way you get to feel as if you have accomplished comething - have one less acct to pay andcan snowball that payment into the next highest amount due.

**Happy Dope** · 09-05-2010, 06:34 PM

Our motivation is to get out of debt and get out of this house! lol

Thankfully, we have hub's bonus coming up in a few months, so that'll take a lot off of it.

**Russ** · 09-05-2010, 07:23 PM

I would pay minimum on all but the smallest. Put as much as you can on the smallest. That amount is your snowball.

After the first CC is paid off, take your snowball, add it to the minimum you have been paying on the next smallest amt... continue until debt free.

**mndtrp** · 09-05-2010, 09:27 PM

I look more at the wasted money on interest, than the effect of paying off one of the bills.

Personally, I would be happier knowing that less of my money was going out the door to something as useless as interest. Therefore, I would pay off the highest interest rate cards until paid off, paying the minimum on the other cards. I would then take that payment, roll it into the next highest interest rate card.

Some people need to feel good about paying off one of the bills. I accept that, as it can help you to stay motivated. I am not one of those people, you may be.

**Palooka** · 09-05-2010, 09:48 PM

I would do what Russ said. Plus it gives you a sense of accomplishment and getting rid of the smallest first is less bills to deal with.

**Mom2-3** · 09-05-2010, 11:15 PM

Yup. The interest rates are very close, so smallest to largest. Minimums on all but the lowest debt. Attack with furry

Then on to the next one. You should make great progress with a bonus.

**3tomboys** · 09-05-2010, 11:26 PM

I also have to agree with Russ. Pay off the smallest first and then work on the next smallest, etc.

**miss_cas** · 09-07-2010, 11:22 AM

Do you own a house? I would consider a home equity loan to consolidate the whole mess. First you need a baby emergency fund of at least $1k. Cut up and cancel all the cards except the one with the lowest interest rate. You use that card for gasoline only until you get the home equity loan paid off. Do not carry a balance on the card again. You will be on a no spend period until you get this mess straightened out which means it is food, manditory clothing, toiletries, pet products, paper products, cleaning supplies and vehicle/home maintenance products only. When you get the loan paid off, refuse to return to your former ways.

The other option is another o% interest credit card offer, transfer all the small balances and even get a second job to get it all paid off by the time you will be paying interest.

**lparker** · 09-07-2010, 11:51 AM

Don't go in debt to pay off debt. It looks like you are paying more than the minimums on the cards so you aren't "hurting" for money. What is your savings? Before you pay off your cards, it would be good to have a thousand or so in a baby emergency fund...pay minimums on your cards until you build up this fund then pay minimums on all the cards except one of your choosing. Put all your extra cash on that card until it's paid...keep going like that until they are all paid. Aim towards going on a cash-only basis. Looks like you will be there within a couple years.

**MTS04** · 09-07-2010, 03:42 PM

Looking at what you paid out this month, you paid 500$ to CC debt, soooo....
if you pay minimums on all, and put the remainder on card 3 (i'm guessing about $425-450) you should have card 3 paid off in 2 months. Then I would attack your next smallest then rinse and repeat.

**Happy Dope** · 09-07-2010, 04:57 PM

Thank you all so much!!!

I've been reading through all of these posts, and they're great.

Today, I got an offer on one of my credit cards (that currently has no balance) for 0% balance transfer and 0% APR until August 2011. Think I may have to jump on this to get rid of one of my cc's with 16%!

What do you think?