Opinions

[lil_walnut]

I've already talked with my financial planner (he was my fathers and with what he did for dad, I trust him with me) and he thought that my idea to take my yearly bonus (~10K before taxes) and pay down the CC debt.

 

There's a ton of it, and I've been paying on it, and slowly it's going down. But the 10K won't cover it all.

 

What would you do:

 

a - pay off all the cards under 1K (would be about 2K or so) then pay down the others so I'm at 50% or less, even distributed.

 

b - take it and pay off everything I can starting with the lowest amount, that would pay off all but one of them.

 

No matter which route I take, the money I would be spending will roll into paying off the others. I will be out of CC hell by the end of the year!

 

I just want to know which of the two you think would do the most good.

[Seabee]

I would chose (a) IFF you need a score boost now.

 

I would list cards from highest interest rate to lowest, and pay in that order.

[54regcab]

I'd do option b, kill all but one of them. One chech to write every month.

You shouldn't be taking out any more loans until your CC debt is cleaned up.

Edited February 27, 2007 by 54regcab

[lil_walnut]

When you move, and don't have much in reserve, short term loans are sometimes the only option, unless you can live without the basic kitchen appliances.

[squirrelgirl]

It doesn't sound like scores are much of an issue. Normally I would say to pay the highest interest rate ones first. If the rates are similar, I would say to pay off as many accounts as possible.

[lil_walnut]

I've been debating a lot, and scores will matter in about a year.

 

I guess my biggest concern is that someone will get a wild hare, and decide that I'm too close to the limit on too many cards (doncha love $500, $1000 & $2000 limit cards?).

 

I'll have all but the big one paid off if I just pay the smaller ones first. And since I routienly throw $50-$100 to each card, I thought of snowballing them into the big one. The interest there is killing me, but I would sure like that to be my only balance I'm working on.

[radi8]

I thought of snowballing them into the big one. The interest there is killing me, but I would sure like that to be my only balance I'm working on.

 

If that's what you are comfortable with, why not? Only one payment to make every month-

[Bret]

I'd go with plan B also.