What to pay first?
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| Thu, 02-19-2009 - 8:11am |
Ok so I will be getting my tax return next friday and my plan is to pay things off with it. My federal is going to be $4750 and my state $1153 so all together it will be about $5900. $1800 of that is going to my property tax and I really don't know which credit cards to pay off with the rest. So I need some opinions, here goes.
Card #1 $1605 @ 22.90% monthly payment $105
Card #2 $5896.67 @ 9.24% monthly payment $100
Card #3 $ 2540.11 broken down as follows $1127.78 @ 18.90%, $1165.72 @ 11.90%, and $238.40 @ 1.99% monthly payment $65.00
Card #4 1968.33 @ 0% until Jan 2010 monthly payment $19.00
Card #5 1080.84 @ 21.90%
Card #6 438.17 @ 22.99%
Card #7 1072.44 @ 0% for 6 months (expires in June)
So what does everyone think? SHould I go with the smallest amounts or the highest rates?
Thanks for any ideas. Liz



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Hmmmm,
This is a good problem to have. $4100 huh? That is awesome! I say fund the efund. I didn't use to believe in it very much. But, the threat of having use credit again after all my hard work, prompted me to fully fund it. Honestly the pp's have good ideas, but what you really have to do is the math. Put your numbers on a spreadsheet with all of your minimums and interest rates after they go up in the time allotted. Can you snowball your payments enough to pay off the high interest credit cards first before the interest rates rise on your other cards? If you are out by a little bit it doesn't matter. You will be way ahead in your journey very soon. Do what feels best.
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