December 19th, 2008 | 
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Edward asked:
I have 4 credit cards, 2 with approx 500.00 each on them w/ min. monthly payments of between 15.00 and 30.00. I send them each 50.00. (both store cards, 1 @ 17% 1 @ 0% for 6 more months)
The other cards have approx 5000.00 each on them with min. payments of approx 200.00 I usually can only make the minimum payment on these. (Major c/c’s w/ average APR’s)
I have 4 credit cards, 2 with approx 500.00 each on them w/ min. monthly payments of between 15.00 and 30.00. I send them each 50.00. (both store cards, 1 @ 17% 1 @ 0% for 6 more months)
The other cards have approx 5000.00 each on them with min. payments of approx 200.00 I usually can only make the minimum payment on these. (Major c/c’s w/ average APR’s)
My budget currently allows me to take approx. 500.00 each month to dedicate towards debt reduction. My question is, is it better to pay off the lower balance cards (I won’t really notice the difference of the 100.00 per month I will save) or am I better off to send large chunks of cash towards the high balance cards to reduce their monthly payments.(and then continue to pay on top of that the 200.00 @ I am already putting there.) ?
Annmarie Klos
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The smaller cards first so you to attack the smaller cards first so you to attack the smaller cards first so you to attack the highest apr.
I agree pay down the highest apr first.
Then make a log and write in it whenever you spend money on ANYTHING. Even a cup of coffee.
This helps you to tighten up spending a bit more, and perhaps put it towards other cards or even into a savings account.
The extra money you will save thousands in interest and put it to the next cc till you can apply all of debt few years sooner than you apply toward debt and be out of debt and be out.