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lyla asked in Business & FinanceCredit · 2 years ago

Is it better to pay smaller debts off credit report or pay off larger debts?

8 Answers

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  • 2 years ago
    Favorite Answer

    Write them al down with balance and minimum payment. Make minimum payment on all but the smallest and pay more on that one. Once it is paid off add that payment to the next lowest on your list. Repeat until out of debt.

  • 2 years ago

    if the accoun is in collections, make them a settlement offer and pay them if they agree to remove the derogatory from your credit report but get it in writing so you can send it to the three credit bureaus

  • ?
    Lv 7
    2 years ago

    I would pay the one with the highest interest rate first assuming you carry a balance. If not, it does not matter as long as they are paid on or before the due date.

    Some say to pay the smaller ones first so you have one less bill.

  • ?
    Lv 7
    2 years ago

    Pay off the smaller ones first, as they get paid off add their payments to the larger debts

  • 2 years ago

    Pay off as many as you can (so smaller) but its only a small help until everything is paid off.

  • Judith
    Lv 7
    2 years ago

    Smaller debts while making minimum payments on the rest. Once the smallest debt is paid off start working on the next smallest debt. It's called the snowball method and it's the only method which has ever worked for me.

    Don't bother looking at the interest rates else why bother with the snowball method? Some would say to pay off the debts with the highest interest rates but that never worked for me - I needed to see a payoff (get gratification) sooner in order to keep on track.

  • 2 years ago

    Smaller, but you should also look at the interest rate of each.

  • 2 years ago

    Pay off the smaller debts. Make a small payment on the bigger debts, but pay off the smaller debts first. Sometimes one forgotten small debt can go into collections and ruin your credit score. By paying off the smaller debts, you free up money to make larger payments on the bigger debts. Do stay focused and concentrate on paying it all off -- it DOES look good for you to pay off the debts rather than go into collections or go into bankruptcy. It IS hard, but keep at it over time. Good luck!

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