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How do I pay off 6 credit cards?
Hi! Answers
I have 6 ‘cards’ that I do not use anymore and would like to pay down in some logical and financially sound order. I have been paying $5 over min. on these accounts each month and have another $800 cash on hand. I pay all my accounts on the 3rd when my check comes in. I have complete health care coverage by the VA. Any direction to follow would be greatly appreciated. I am 75 years old and on Soc. Sec.
Card APR Due Lmt. Min.
4310 12.9% 294. 500. 20.
2178 15.9% 1415 1600. 28.
3356 0.0% 1253 1600. 20.
0688 0.0% 269 500. 20
7388 8.9% 2100 2500. 42
5111 14.24% 2550 3000. 58
Total 7881 9700 188
My due dates are all after the 3rd and paid ahead of time. I thought of paying off the 2 $500 cards giving me $40 more to attack the high interest cards. I still have $800 cash to work with.
3 Answers
- Go with the flowLv 71 decade agoFavorite Answer
Financially Best - The Rule:
Always pay the highest rate intrest card off first.
So pay the one with 15.9% apr aggressively.
Pay all the others the minimum due.
When finished with that one, don't close it.
Just cut it up and don't use it.
If you close it, you could actually hurt your credit.
Then tackle the 14.24%.
Any financial advisor including Suze Orman will tell you this is best.
Dave Ramsey (I'm not a believer)
Has a debt snowball plan, which is best if you need a sense of accomplishment.
His plan has you pay the smallest balances first.
Do what's best to save you money.
Pay when you get the bill in the mail. Not on the 3rd of each month.
If you pay on the 3rd, and your due date is on the 2nd, you could get hit with late fees.
Just keep the money in the checking until you get the bill in the mail..
- 1 decade ago
what i've done is call the card company talk to them tell them that you're on a fixed income and you don't want to go bad but you cant afford to make payments any more, they will ask why example id tell the you're meds are know taking a way you're ability to pay. i had a card i was going to pay off in full change my interest from 20% to 0 and lower my payment, they closed my account but at least it will not be paying interest. some will work with you some will not work with you.
- Anonymous1 decade ago
If you can pay 10% per month, in 12 months you'll be debt free
Source(s): Retired bill collector 35 years