Question

So I found out that I'm getting $7900 back for my tax refund. I want to put it all towards my credit card debt. Below you'll see my credit cards. How would yall apply the money? Highest card? Or highest interest?  

Answer 1

Personal loan first.  

Answer 2

Personal loan bc you’ll have so much more money leftover per month to pay off the other debts

Answer 3

WF personal loan will give you the most to snowball into the others and would be what I would pay and remainder on BELk.  

Answer 4

If it were me, I would pay off the WF loan due to the high payment. Then I would take that payment and do the snowball method. In a year you will have knocked out the loan, Belk, and capital one for a total of almost $14, 000!  

Answer 5

I think I'd be tempted to do the personal loan, because it frees up a big chunk of change. BUT, knowing myself, I would pay that off and then not really use it to continue paying off debt. So, I think I would do Belk and Capitol 1, then throw the rest at the next highest interest rate and snowball from there. Save the personal loan for last. I don't know the details, but there can't be too many months left on it anyway!  

Answer 6

I would do the one with the highest minimum payment.  

Answer 7

Do personal loan then you can use that nearly 500 towards the others each month

Answer 8

Smallest to largest. ✌

Comments

This is what I would do and you’d get two completely paid off and they just happen to be the highest interest rate.  

Answer 9

Im a little different. Interest can kill you so I would apply to the highest interest first!  

Answer 10

Personal loan first. Then you will have more to throw at debt and get done faster

Answer 11

I would pay off the personal loan first.  

Answer 12

Debt snowball. Smallest to largest. Then take what you were paying on the others and apply to the new lowest to keep the snowball rolling.  

Answer 13

I would also pay off the personal loan with that. That gives you $476 extra money in your budget EVERY month. I found freeing up a large monthly minimum payment was so helpful and worth it in my debt payoff journey.  

Answer 14

Kill that personal loan & the rest at the Citibank.  

Answer 15

Normally I would say highest interest first but I am with a lot of others with the personal loan. I am doing the same as soon as my husbands bonus money comes. Paying off a loan that is our 3rd largest payment (behind rent and auto payment).  

Answer 16

The personal loan will free up the most money per month

Answer 17

Personal loan since the interest is so high.  

Answer 18

Pay off the belk card and GET RID OF IT. You’re losing money by having it! (I worked there for far too long)

Answer 19

My initial thought was pay off the loan, duh! That frees up a huge chunk of money that you can snowball into your next debt. Hubby said no, pay citi and belk because you’ll pay nearly $2000 in interest in the amount of time it takes you to pay them if you pay the loan off. Instead you’ll end up paying $700. So I suggest you do the math with interest.  

Answer 20

Personal loan, remove that 476 a month!  

Answer 21

Personal loan, it frees up the most and then I would work on Belk next with the original $80 payment + the amount you aren’t paying anymore for the personal loan and get that thing paid off quick! After that I would roll all that savings in monthly payments into capital one. Before you know it would would have 3 debts paid off.  

Answer 22

Cap one at 24% and Belk at 25%

Answer 23

Are you currently making min payments? Or more? If so, personal loan. You can bang out smallest to largest after that with $ you won’t have on the PL. belk in just over 5 months time. another 8 months and capital 1 is gone.  

Answer 24

Personal loan to free up that minimum payment then I would do the snowball method since the rest are pretty similar in interest rate

Answer 25

I'd pay off WF personal loan and then take that payment and apply towards the Belk. And so on.  

Answer 26

I would pay off the WF Personal Loan. That way you’ll free up $476 a month. Giving you more wiggle room in your budget

Comments

@venable agree

Answer 27

Lowest to the highest. Then roll the minimum payment from a paid off card to the next one. Paying the smallest one first will give you a sense of accomplishment. Paying the high interest rate first still leaves you with all the cards.  

Answer 28

I’d knock out cap one and bell first then make sure your EF is funded.  

Answer 29

I’d pay WF personal loan off and use that 476/monthly to add to minimum payment for snowball method.  

Answer 30

I would do start smallest to largest

Answer 31

Pay of personal loan! Then use the $476 payment to snowball!  

Answer 32

I would pay off Belk and capital 1

Answer 33

I would pay off Wells Fargo personal loan then do debt snowball with that extra 476

Comments

@fjeld95 100% what you said.  

Answer 34

I’d do highest interest first.  

Answer 35

Highest interest

Answer 36

Personal loan all the way!  

Answer 37

Personal loan! Has the largest minimum payment and will allow wiggle room for the future months in paying the others off quicker!  

Answer 38

I’d pay off the personal loan first THEN use that extra $476/month and start attacking the highest interest card next.  

Answer 39

Personal loan FOR SURE

Answer 40

This is a personal choice on how you will pay off your debt. I am sure many people wrote about paying off debt by avalanche versus snowball. Do the numbers and see what is in your best interest.  

Answer 41

Personally highest interest. I would pay Belk and Cap 1 then the rest can go to AA citibank. It frees up an extra $200 a month to help pay off debt faster. It might not seem like alot but you will save alot in interest in the long run.  

Answer 42

I’d pay off lowest balance to highest balance. It looks like your first two lowest loans are also the highest interest rates so definitely knock them out first.  

Answer 43

I would pay off the personal loan. Then you get $476 back each month to roll onto other debts.  

Answer 44

Capital 1 and Belk. Snowball the additional $200 per month to AA Citibank.  

Answer 45

Highest interest cards first.  

Answer 46

I’d pay off the loan as that would free up a huge amount to snowball.  

Answer 47

Belk to free up money to put elsewhere!