Just finished paying off our one credit card, we have 3 left to go. But I am not sure which one to go after next because 2 of them are at 0% for the next year. Any input is appreciated. Thanks!
1. Balance $2,945 -- 0% until March 2017 then 18.24% -- payment $30
2. Balance $7,500 -- 0% until February 2017 then 14.24% -- payment $80
#1 first because if the end of the zero-percent interest period comes before you pay off, all the interest that would have occurred during that period becomes suddenly due. At 18% interest, that could be a hefty fine for not making the deadline. For the same reason, you could hump on #2 to get that out of the way quickly, too.
February and March 2017 is not that far away. Based on the interest rates, I would pay them off in the order that you have them listed: Get rid of the smallest one first, as next year it will have the most usurious interest rate of the bunch. Then work on #2, as it will be twice the interest rate of #3. #2 & #3 are such similar dollar amounts that I would save the 7.5 Interest Rate debt for last, so that I wouldn't risk paying 14 or 18 percent on the other balances.
Ramsey is pretty clear, smallest balance to largest.
Personally, I would determine the minimum amount to put towards the two 0% cards in order to pay them off by January of 2017. Then I would put any remaining towards card #3.
Yes - 1 2 3 for the reasons stated. #3 is a keeper, if you are slow with a.payment - or end up holding it for a few extra months, no harm done, it is fixed at 7.5. Paying $10500 in only 11 months will be quite a load, best wishes.
How much do you have to put towards this every month? I agree with the comment to divide out the number of months to have it paid off by the March and February dates (i.e. March 2017 is ten payments away, so $294.50 per month on that one) and put the excess towards #3.
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