Where to start?

iVillage Member
Registered: 04-18-2012
Where to start?
3
Thu, 04-04-2013 - 9:59am

I have several cards with balances that I want/need to start paying off.  Where do you suggest you start (and by that I mean, which card should get the focus first)?  Should I start with the smallest balance or focus on the card with the highest interest rate?

Community Leader
Registered: 07-26-1999
Thu, 04-04-2013 - 11:36am

There are plenty of schools of thought on this, some will say pay the minimums on all the cards and then put all your extra towards the highest interest rate one to save the most in the long run.  If you need more instant gratification or push to get your spirits up so to speak, pay off the smallest balance quickest and then take that money and "snowflake it" onto the next card you pick.  If you'd like to post more specific number, such as balance, interest rates and minimums, someone will be happy to help prioritize them if you'd like.  The Debt Support board is also good for helping with monthly budgets, where might be good places to cut, additional income sources, etc.

Welcome to the board!

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iVillage Member
Registered: 07-24-1997
Thu, 04-04-2013 - 12:16pm

I second everything Arryl said.  Personally I feel you should do whatever motivates you the most.  Although I paid mine off on a debt management program (DMP) which sent payments to all of my credit cards every month, when I got big chunks of money in addition, I put it toward paying off the smallest balance first.  I liked seeing the *number* of lines of credit going down even more than the overall balance.

iVillage Member
Registered: 04-18-2012
Tue, 04-09-2013 - 11:58am

Thanks, everyone!  I appreciate your feedback.  I sat on it for a few days and really thought about what would motivate me most.  I've decided to start on my smallest debt first and made my first "extra" payment this morning.  This will be a long journey but I'm glad to finally be on the road!