Credit Cards.....

[Brano11]

Well my bank is giving me a run around on some actual advice when I ask them, so im gonna toss it to you all and see what you think.

Last year I was unemployed for around 9-11 months so I racked up some CC debt. Would it be better for me to pay off on a card completely (800 dollar limit) or to make a large payment 1000 payment on a (5k limit) CC?

 

[Copycat]

You want your debt to be less than half of your maximum amount. So if your credit limit is 10,000$ combined. Stay under 5,000$ combined. I would quickly get under half your limit, and make double the minimum payment for an extended amount of time to bolster credit.

 

[dewey2461]

Pay off the one with the higher rate first.

If they are both the same then I'd pay off the $800 one and put the $200 toward the higher one.

One less bill to pay next week/month.

 

[JimJohnson]

If you can afford it pay off the 800$ in on go but still paying a good chunk on the 5k one. It would allow you to put double payments on the 5k to pay it off over the next 2-3 months.

 

[Brano11]

Awesome thanks guys. Much simpler then my bank was trying to tell me to do lol.

 

[evilbarney]

another option if there high interest ccs is getting a loan with a lower % and using that to pay off the CCs at one time it will save money in the long run