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I suggest you pay slightly above the minimum on the other cards. Before Washington Mutual became Chase, they provided credit score information. One thing they reported was whether you paid above, below or at the minimum balance. Since they kept track of it, they must use it for something. I suggest you round up to the nearest $5 above the minimum balance due.
I suggest you pay slightly above the minimum on the other cards. Before Washington Mutual became Chase, they provided credit score information. One thing they reported was whether you paid above, below or at the minimum balance. Since they kept track of it, they must use it for something. I suggest you round up to the nearest $5 above the minimum balance due.
With the kind of debt the OP has I don't think this is going to make much of a difference.
I always recommend tackling the lowest balances first... then take the full payments and tackle the next lowest... then take full payments and tackle third lowest...
The elimination of a full account has a huge psychological affect that keeps you motivated to take on the next... there's a snowball affect if you keep that up.
Money wise you would be better to tackle the higher percentage, but there is a much higher success rate by going after the small balances first.
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I agree. Knocking off the lowest balance and appliing that payment to next in line has a higher success rate as compared to other strategies. Probably due to psychological advantage of actually having eliminated something and seeing results of the efforts.
I always recommend tackling the lowest balances first... then take the full payments and tackle the next lowest... then take full payments and tackle third lowest...
And every financial advisory, every single self program, every single software program (Quicken, MS Money, the downloadable spread sheets and a number of web sites) ALL recommend paying down the highest interest rates first, as those are the ones that are creating the huge sucking sound of your personal finances.
Second point: People that seek financial advise from anonymous people on the internet are fools.
There are many sources of free (never never never pay for it) debt reduction services, and many programs/websites that will help the person with a little common sense and self honesty.
While paying off the highest interest card first will usually result in a shorter payoff period, it rarely works. People simply will not stick to the program. Probably because they may not see results (as measured by the number of checks written each month) for years. No "results", lose of commitment and abandonment of the program. Positive reinforcement & feedback works the best.
Interesting enough the difference in time between "Paid off date" is small. Using a random number of debts, amounts and interest rates spanning years, the final pay off date of either method is almost always within two - three months.
While paying off the highest interest card first will usually result in a shorter payoff period, it rarely works. People simply will not stick to the program.
Then their own stupidity and lack of self control shall consume them and they shall forever be a huge profit account for the greedy banks.
But there are many that are serious about getting the big banks out of their pockets and do cut the leash (chain?) of debt. It takes a plan and willpower or self-control. You know behaving like an adult vs. the 5 year old in the toy aisle at Wal-Mart
Pay the one that is accumulating the most amount of money in interest first.
True if you base this on a interest paid PER $ basis, but if you are basing this on balance this is false. Irregardless (yes I know it is not a real word) of balance, pay the highest interest rate loan off first and you will save money paid in interest and get out of debt sooner.
The math is really really simple if you actually bother to do the math.
Then their own stupidity and lack of self control shall consume them and they shall forever be a huge profit account for the greedy banks.
But there are many that are serious about getting the big banks out of their pockets and do cut the leash (chain?) of debt. It takes a plan and willpower or self-control. You know behaving like an adult vs. the 5 year old in the toy aisle at Wal-Mart
You obliviously do not work with clients who are in debt and need a path out. Your comments are condescending to those whom you consider “are not as smart” as you and who may have acquired the debt due to illness, death, lose of job, divorce or other “out of their control” circumstance. Not everyone is stupid, lacks self control or has a recession free job, a wealth family or other support structure. Please focus your comments on areas where you may have some knowledge. Real life debt reduction is clearly not in this category.
Seriously? You sound very condescending to the OP. A forum IS where you can ask advice of other people, even if it is a financial question. Geez.
I'm sorry but some people have been out of work and do not have any other income BUT to use their credit cards to pay their bills, etc. I had to for the last couple months & do you think I liked it? NO! If I made enough money to pay OFF a credit card bill, do you think I would have the debt in the first place??!! LOL!
I agree with the last poster--s** happens. Sometimes you have to use them for emergencies, food, etc when you don't want to--it's called reality. It doesn't make the person who does any less smart or financially responsible. That's bull. JMO.
Quote:
Originally Posted by Asheville Native
And every financial advisory, every single self program, every single software program (Quicken, MS Money, the downloadable spread sheets and a number of web sites) ALL recommend paying down the highest interest rates first, as those are the ones that are creating the huge sucking sound of your personal finances.
Second point: People that seek financial advise from anonymous people on the internet are fools.
There are many sources of free (never never never pay for it) debt reduction services, and many programs/websites that will help the person with a little common sense and self honesty.
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