Hello all, I need some help on this one. I have been trying to figure out what plan of attack to use to pay off current debt, In hopes of being debt free someday (LOL) and boosting scores. Here is what I currently have: CARD A 220 BAL 600 LIMIT 18% 11/99 OPENED CARD B 450 BAL 800 LIMIT 18% 4/01 OPENED CARD C 2500 BAL 3000 LIMIT 20% 3/01 OPENED CARD D 60 BAL 300 LIMIT 18% 12/00 OPENED CARD E 125 BAL 450 LIMIT 18% 5/00 OPENED CARD F 175 BAL 600 LIMIT 18% 9/99 OPENED GARD G 8000 BAL 11500 LIMIT 11% 10/01 OPENED CARD H 80 BAL 2500 LIMIT 12% 11/01 OPENED I have $1000 now to use. I trying to find the best way to spend it. Is it best to try and pay off the high interest cards first or payoff the small balances? Should I close any? Sorry but I'm driving myself crazy trying to make the best decision, LOL Thanks!
Is one of your score reason codes: FACTOR 4: TOO MANY ACTIVE ACCOUNTS WITH A BALANCE: YOUR CREDIT REPORT REFLECTS SEVERAL ACCOUNTS WITH BALANCES, WHICH HAS A NEGATIVE IMPACT ON YOUR CREDIT SCORE. IMHO, I would pay off the low balances and be done with them. Then work on the High APR. CARD A - 220 BAL 600 LIMIT 18% 11/99 OPENED CARD B - 450 BAL 800 LIMIT 18% 4/01 OPENED CARD D - 60 BAL 300 LIMIT 18% 12/00 OPENED CARD H - 80 BAL 2500 LIMIT 12% 11/01 OPENED CARD E - 125 BAL 450 LIMIT 18% 5/00 OPENED CARD F - 175 BAL 600 LIMIT 18% 9/99 OPENED TOTAL $1110 CARD C - 2500 BAL 3000 LIMIT 20% 3/01 OPENED GARD G - 8000 BAL 11500 LIMIT 11% 10/01 OPENED TOTAL $10500 Do you have an attractive Balance transfer option on CARD H? You could move the Balance from C to H after it's paid off, if you do. Then its pay, pay, pay on the $10500. The reason I'm thinking this way is because most of the low balance cards are at 18% anyway, not that big of a difference from the 20%. I think you would see a bigger impact, plus feel alot better having paid off 6 cards and only having 2 remaining.
I agree. I would pay off all those little ones first, then for the ones with the higher balances start with the highest interest first.
Quicken also has this debt reduction tool that might be of some help to you. I personally think it's great. http://www.quicken.com/shopping/debt/
