Hello all, I want to get some ideas on the best way to pay off my credit card debt... I have $17,222 in my checking account earning 3.25% per month My total credit card debt is $25,200 $10,000 at 10.99% $6,100 0% until April 2011 $6,700 0% until November 2011 $1,600 0% until September 2011 $350 0% untill February 2011 $450 0% until July 2011 I have an extra $2,000 to $2,500 available on a monthly basis to apply towards my credit card debt. Thanks in advanced for any advice!
You're in pretty good shape since you have an extra $2,500 a month to pay off the $25K. I would pay off the $10K at $2,500 per month from now till Feb. Leave your checking alone for now, since I'm assuming that $17k is your EF and you'll want to leave as much as possible there. 3.25% by the way is A LOT for a checking account...are you sure that's right? Next, take $350 from your checking and pay off the the $350 balance that adjusts from 0% in Feb. Next, start allocating your extra $2,500 in March and April to the $6,100 balance. You'll need to allocate another $1,700 from your checking in April to pay off the remaining amount. So, by this point your EF still stands around $15K, which is hopefully enough for you. You'll be able to start replenishing it soon anyway. Next, move onto the $450, $1,600, and last but not least the $6,700 from May through November. Your extra $2,500 per month will be plenty to knock the last 3 out as fast as you want while putting anything that's left over back into your EF. Good luck!
Nice - thanks! I like that plan...some people told me to pay the 10k off now, but I do not feel comfortable depleting that much of my cash. I never know what will happen in the future. 3.25% Smart Money Checking Citizensbankna.com 12 retail transactions 2 bill pays online statement 3.25% on balances up to 25k It is a Kansas bank, when I first found it last year it was 4.52%...can you believe it?
Nice find on the checking account...3.25% on balances up to $25K is a great rate. I would never use my debit card enough to qualify, but it still is a nice find. Please come back and keep us up to date on how your payment plan works out too!
