How to Figure Out Which Credit Card to Pay Off First
Saturday February 14, 2009
Once you've decided to pay off your credit cards, you have a small dilemma - which credit card should you pay off first. It's not as easy a choice as it seems, especially when you have several credit cards and you want them all paid off. One thing's for sure, it's definitely more effective to focus on paying off one credit card at a time (while paying the minimum on the others, of course). Here's an answer to the question: What order should I pay my credit cards?. And when all else fails, you can always put the cards in a hat, pull one out, and start with that one.
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Comments
If you credit card debt across many cards, and you have one credit card with a small outstanding balance, pay it off first even if it is a lesser interst rate. Having one less card on the list does wonders for your mental state.
This might sound counter intuitive but I would pay the credit card that has the least amount owed on it first then stop making payments on the other credit cards until you have saved at least 25% of the original balances owed. If you do debt settlement and debt validation properly, you will find that creditors will meet you at a fraction of the orginal balance just to have their money now instead of latter.