Do You put more money.........

iVillage Member
Registered: 03-27-2003
Do You put more money.........
14
Wed, 01-11-2006 - 9:15pm

towards the debt with the highest interest first or the one with the smallest balance?

Holly

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iVillage Member
Registered: 11-13-2004
Sat, 01-14-2006 - 1:43pm
I do the smallest balance because its easier to pay off, and then its one less payment and you can take that extra money and put it towards the next balance.
iVillage Member
Registered: 01-06-2005
Sat, 01-14-2006 - 4:27pm

Holly, if you are asking for advice, it depends. :-)

If your "lowest amount owed" is small enough to pay off in 6 months or less, I say PAY IT OFF! However, if your "lowest" is still large enough to take longer than 6 months, pay on the highest interest rate first.

That is just MY opinion. :-)

We have 3 credit cards, all with high rates, but the highest owed has the highest rate...so we are focusing on that first.

~Aravis~
GOOD LUCK~

 

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iVillage Member
Registered: 10-07-2003
Sat, 01-14-2006 - 4:51pm

I paid lowest first b/c I have to see some fast action to feel like I am making progress.

Pumpkin

&nbs

Avatar for mrslove2000
iVillage Member
Registered: 03-26-2003
Sat, 01-14-2006 - 5:31pm

We've done it both ways, so it's personal preference. After DH & I completed Dave Ramsey's Financial Peace University in December, we are putting extra money towards all of the smaller debts then our highest interest debt then our fixed debt (car payments). I would like to have a visit from the Lottery Fairy and just pay them off at once but until then this is what our plan is. LOL

Susan

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