Question

Question: if you have a lot of credit card debt and getting a tax refund, would you pay off all the smaller balances first and apply that extra $ to the largest balances (I could pay off all the smaller balance cards which is $398 in minimum payments and just have the 2 highest balances with the minimum payment total of $211) or should you pay off the 2 highest balances first?  

Answer 1

Smallest 1st

Comments

@declare that was what I was thinking because after I pay all the smallest that I can, i will have $400 extra to pay towards the bigger ones. If i paid the 2 biggest ones then i would only have $200 extra to pay towards the smallest

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@schoenfeld1763 that way you don't have to worry

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@declare I just have to discipline myself to pay it towards the higher ones and not spend it.  

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@schoenfeld1763 yes, pay it once you get it

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@declare you got this!  

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@tiliaceous16044 thank you! I sure hope so!  

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@tiliaceous16044 thank you so much

Answer 2

We have a lot of CC debt and getting a good refund. I just made a list of the amounts and interest rates. We are playing off the one that is interest free until April before that’s up and then starting with the highest interest rate and going down the list. Avalanche method that TBM did. We are also keeping some in the savings because it’s super low right now and not comfortable with it

Answer 3

Smallest. It frees up more of your cash to pay other stuff.  

Comments

@chaunceychaunt that was what I was thinking too but needed some opinions lol. After I pay all the smallest that I can, i will have $400 extra to pay towards the bigger ones but I just have to discipline myself not to spend it and use it towards the higher ones. If i paid the 2 biggest ones then i would only have $200 extra to pay towards the smallest

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@schoenfeld1763 that's what I would do. You will have to have discipline but you got it!  

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@chaunceychaunt thank you. I hope so! For awhile I have felt like I work to just pay bills with little extra. Being a single mom with one income it gets hard. My goal is to buy a house within a year and use next years tax refund to pay off my student loans.  

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@schoenfeld1763 you have the plan in place, now you just have to work it. ❤

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@schoenfeld1763 I feel like that right now. Lol we’re going to is out income for new tires and car tags

Answer 4

Low balances to high balances.  

Answer 5

This visual might help.  

Comments

@doxology yes it does. Thank you so much!  

Answer 6

We snowball low to high but when I get a large sum to dump on debt I reevaluate. Sometimes I go for a big one if they have super high interest or will free up a lot of money. In your case I would knock out the small ones to free up the money to throw at the big ones.  

Comments

@hauteur thank you

Answer 7

We've snowballed smallest to largest.  

Answer 8

I think either the snow ball (smallest balance first) or avalanche (highest interest rate first) . they both work really well. it’s just what motivates you. less accounts or less interest. for me it’s paying less interest

Answer 9

Thank you all so much!  

Answer 10

All the smallest ones.  

Answer 11

Depends on if you’re doing snowball or avalanche. What kind of interest rates are on the cards? If you’re going to save a ton on interest on the larger cards I’d do those

Comments

@squirearchy all of the interest rates are close amounts

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@schoenfeld1763 then I would knock out the small ones and snowball those payments to the larger ones

Answer 12

I do highest interest first