What worked best for you???

iVillage Member
Registered: 01-17-2013
What worked best for you???
2
Thu, 08-22-2013 - 1:29pm

I know there are differing opinions  on this, but I'm wondering what worked best for you.  Did you start by paying off the smallest balances or did you work on the cards with the highest interest rates first???

iVillage Member
Registered: 04-16-2008
Fri, 08-23-2013 - 12:25am

I paid my full balance every month and do not have credit card debt.  Logically you should pay the highest interest card first, but for some people, paying off the lowest balance could give them a sense of accomplishment.  The question is, could you transfer, if not all, at least a large chunk of your highest interest balance into a lower interest card?

Community Leader
Registered: 08-25-2006
Fri, 08-23-2013 - 12:17pm

D is right that in theory, you want to start with the highest interest, but it can be a little deflating if you have one huge balance that seems will never go away while only pecking at the lower ones. 

Regardless of which one you start with, the other part is the snowball effect.  This only works if lets say you budget $500 a month for CC payments.  Once that first card is paid off, you must still use that entire $500 towards the CC debt.  This is the part that it easy to slack off on, and why it often takes us so long to pay them down of off. 

Good luck and also check out the other finance boards.  Debt support is the most active over here.

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