Tax refund is coming. Should we pay the whole amount on our largest card to get the $350 minimum payment down.or should we split it up and pay off ALL of our smaller cards (some of which are behind and we’re starting to get a lot of collections calls) The refund would be enough to pay off all of our small debts, but it wouldn’t leave any to touch the biggest debt with that huge minimum payment and high interest rate.

Question

Tax refund is coming.  Should we pay the whole amount on our largest card to get the $350 minimum payment down.Tax refund is coming. Should we pay the whole amount on our largest card to get the $350 minimum payment down. or should we split it up and pay off ALL of our smaller cards (some of which are behind and we’re starting to get a lot of collections calls) The refund would be enough to pay off all of our small debts, but it wouldn’t leave any to touch the biggest debt with that huge minimum payment and high interest rate.  I’m so conflicted. Any advice? Personally, I would like to get rid of all the small debts before they get sent to collections or try to take legal action. I’m tired of the phone calls. My husband thinks we should pay all of it on the large card balance, even though it won’t pay it totally off. He thinks we should do it to lower that $350 minimum payment. Help!  

Answer 1

Pay off all little ones then roll over that monthly payment amount over to pay extra on the big one

Answer 2

Pay the small off and snowball the big with those minimum payments!  

Answer 3

I would pay off all the little cards, and then just focus on the big debt by itself after.  

Answer 4

Smallest first

Answer 5

What are the minimum of the other payments, along with fees? If you pay them, you will have $x to add to the $350 min payment?!  

Answer 6

Payments on all of the small ones are probably equal to about $300-$350 themselves. As horrible as this sounds, the smaller cards are all in my name and I can let them go as far as being late on the payments if I have to. When things have been tight, that’s what I’ve done. The large card is in my husbands name and we’re trying to keep at least one good score, so I’ve always made sure to keep that one up even when things were strapped

Comments

@puleo I know! Luckily those aren’t things on our radar for a while. We just try to keep his score good because he’s always been able to do anything we’ve needed on his own. However, my thought was paying on all these accounts in my name will help my credit score which would be awesome.  

---

The ones in collections you can call and see if theyll take X amount to close out your debts to them. Make sure you have an agreement in writing before you pay them.  

---

@euton33 if you’re already not paying those cards sometimes then I would just pay them all off and not have to worry about them.  

Answer 7

Pay all the smaller ones off then any of the minimums you were paying on them you can start and hit the larger debt with

Answer 8

I was always told to list out all debt from smallest to largest (interest doesn’t matter) and then pay the smallest to the biggest.  

Answer 9

I have paid my biggest to largest. Finally paying off my last credit card once I receive my taxes

Answer 10

I would suggest paying off completely all the credit card bills you can, in your name or his, and clean up your credit! Use any leftover against the one with the huge 350 min payment. Every month try to throw more money against that credit card bill.  

Answer 11

Then, begin saving for a house, 529 accounts, and paying off car

Answer 12

IMO, pay off all the smaller debts!. Have that $1000 EF and then pay those smaller debts bc it will free up money and you can make those $350 min payments plus some.  

Answer 13

I’m with you! I would pay off all the smaller ones that are about to go to collections and then take that money and put towards the big one. @harrelson26aby steps.  

Answer 14

Pay off the smaller debts and use those minimums to go towards the large one. Get both of your scores up in case there is something you both need to be on. Credit score can impact employment, insurance rates, along with regular check things.  

Answer 15

Small debts for sure

Answer 16

Small debts for sure then use their min payments as extra towards the big one

Answer 17

I am paying our small debt off with ours. I hate being in this situation but I am glad to have everyone on here for support

Answer 18

Depends on your goals. Snowball method (paying smaller ones) builds momentum and between those payments you would hv more to pay down the other. Personally i would take care of the delinquent ones. No hassle of phone calls and the monkey(s) off your back. No one wants to be behind. It might be the push you need to get everything going! Good luck  

Answer 19

I would pay off as much as you can.  

Answer 20

I’d pay off all the small ones and use those payments towards the largest one

Answer 21

I’m using all of mine and paying off my 3 smaller credit cards and the remaining amount to my left over large credit card. It is the only credit card that has a 0% apr til 2021 so that’s why it’s last

Answer 22

I'd do the smaller ones . then the minimum were paying on those . Plus the minimum you are already paying for the big one . And all extra will go to just 1 card and you'll have it paid off so fast

Answer 23

Pay all the little ones. It will Give you so much extra a month to throw on the big one that that payment will come down quick.  

Answer 24

If stuff is going to collections, pay that. It could destroy your credit

Answer 25

Pay off the smallest to the largest then roll the minimum payment on the paid off ones to your next highest debt.  

Answer 26

Thank you all for all of the recommendations. Also, thank you for being helpful and kind rather than judgmental. I see people post their stories frequently and I know it can be easy to pass judgment at first glance. What you don’t know is many times it could be from many things rather than just lack of responsibility that lands people in these hard situations. I’ve never been behind on bills in my life. @harrelson26ut/activity" class="qa-user-link">harrelson26ut my husband lost his job of 8 years in 2018 due to downsizing. His income carried the home. He was laid off for 4 months and found a new job that was just supposed to be temporary. That it was. Exactly one month to the day of him starting there, he was let go yet again due to downsizing of department. We had to use cards to pay bills. Since he got his current job at the end of 2018, we’ve been trying to backtrack and makeup on all we racked up in debt during that time. Seems like you can’t ever get ahead. This year, we both had great full time jobs and things were finally looking up. @harrelson26ut/activity" class="qa-user-link">harrelson26ut in the 3 month window (before you can get insurance and benefits) at my new great job, we found out we had an ectopic pregnancy that prompted an emergency surgery due to a completely ruptured tube. That has landed us about 25, 000 in medical bills alone. Shortly after I returned after that incident, I had to leave that really good job because I physically and mentally was not prepared to jump back in when I did. All of this to say, I am not a fan of pity. At all. @harrelson26UT, being understanding and giving people grace is so important. I used to judge people who had a lot of credit card debt. Now, I know that it isn’t always just a shopping problem. Thanks again for your advice.  

Answer 27

Things to consider: 1) If you pay off those little ones will the money you save on monthly payment offset some of that 350? 2)If you pay on large one will difference in pmt be enough to pay the little ones?