Which is the best way to pay off multiple credit accounts? one at a time or half balance on all of them?
Answer:
This is the way I was told to do it by my financial adviser (my husband and I debt coming out of our ears);
He said to make a list of all accounts, payments-balances-interest rate
You then start with the one that has the highest interest rate, and pay as much toward the balance every month, say your min payment is $30 try to send $75-$100 if possible. After you pay this card off, take that payment that you were sending in and add it to the payment of your next account. Say $75+$50(on next account) making your total payment = $125. You keep doing this until all accounts are paid off.
I hope that didn't confuse you, but to try to make it clearer, you just pay the one with the highest interest rate off first, then when its paid off you take that payment and add it to the next account payment.and keep on going. It works. Only took us 2 years to get out from under ours. Good Luck.
I've heard that is better for the credit score to leave some balance on them.
Pay them off one at a time, starting with the highest interest rate one first.
If you have a good credit score, I recommend getting a loan from the bank, consolidate it, and go from there.
2nd option-pay the one with highest APR., more than the other one's.
For maintaining a good credit report-make sure you don't max out on your limit or near the limit, be at the middle of the limit.
After succeeding the payments, not to close your accounts, and just have 1 major credit card that you will be using, but do not pass the middle of the limit mark.
Better idea if your parents or someone nice can loan you that money and pay them back w/no interest, that will help you alot.
Hey good Luck, I've been there before, just takes time.
(If all fails get a 2nd job & pay it all off, I did, it sucks but, you got yourself into that position. No Christmass shopping for you this year).
Karen's answer miss the point - debt slavery is not to live with you.
As for paying off the Highest rates or Highest Balances first - sounds good and looks good (in math class) but in real world doesn't work good.
Why? the longest journey starts with the first step.
You pay off the smallest balance first .
You now have SUCCESS over debt. OK it is a small one.
Nobody win a marathon without practice or winning other small races.
Get the next smallest debt focus on it and succeed in destroying it. You now have two wins under your belt.
Continue same game plan that works in school, biz, life.
Start small to win big.
visit DaveRamsey.com to learn what banks don't want you to know.
As for those who want to have a 'I Love Debt Slavery ' score, read "The Millionaire Next Door' to understand what the poor will never grasp.
Go with knowledge
try to get a new credit card .transfer all ur balance to one or two credit cards. when its a balance transfer, the interest rate is low.when u have all ur loan under one or two credit card, its easier to pay. and because of the balance transfer ,the interest rate is very low also. Now ,the one u owe most , pay the bigger amount there,and look for the date when the interest rate will increase. Try to repay before that. So that u won't end paying higher interest rates again.
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