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Is it better to pay off one credit card at a time? |
ok so I am in debt trouble. I owe about 12,000 dollars. The balances is divided into 6 credit cards. Fortunately, I am receiving a 5,000 dollars payment that I am thinking of using to payoff some of these balances. Is it better to completely payoff 2 or 3 of my credit cards so I can concentrate on the others, or should I put an equal amount of money to pay some of each account. Please note that the interest rates are almost identical. Also, would it be better to maybe use some of this money in some kind of investment?? Pay off as many as you can. Then you can deal with the other card's . If you pay off on or two your credit score will increase also that will a few less bills each month but make sure to pay the min. on the other cards. I Always pay one off as soon as I can.It gives you a better cash flow each month. put 2k in savings, use 4 to pay off one or more, cut the cards but leave the accounts open, keeps your avail credit up for your credit score. Put some in saving - in case of emergency. Pay off the card one by one so then you can avoid interest on it. Good luck with paying it off and don't be late on payment. Even though you pay 1 by 1, don't forget to pay the minimum on the others. Good luck ! Any credit cards that charge you an annual fee should be paid off and then cancelled; however, don't cancel cards that don't charge you annual fees. You can clip them up to make plastic confetti but keep the accounts open to build and maintain your credit history. |
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