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I need your help

January 5th, 2013 at 03:22 pm

Okay, I have about $900 I can either pay off 1CC that currently has an introductory rate of 0% until about August (I always pay extra on this CC anyway), or I can add this amount to my EF and be half way at reaching my $2000 saved for the year, or pay the $900 on CC 3 that has an interest rate of about 20% and the balance due is $1500. If I pay the $900 on CC3, I should be able to pay the remaining balance of $600 by the end of the month.

Oh geez I forgot, I have a BoA CC that earns cash back, right now the balance is $4600 I was thinking I could pay the $900 on that card and free up a little money that way anything charged on thus card I can earn cash while paying the minimum along with what was charged in full each month, that way I could earn some extra cash as well.

I'm taking any suggestions at this point.

Posted in Debt, | 12 Comments »

12 Responses to “I need your help”

  1. Homebody Says:
    January 5th, 2013 at 03:42 pm 1357400548
    1357400548

    I would pay down the highest rate interest card or half and half with your e-fund.

  2. starfishy Says:
    January 5th, 2013 at 04:36 pm 1357403800
    1357403800

    what's the interest on the BoA cc? i would second homebody's response and put it toward the highest interest card or split it w/highest interest c.c. and EF. or even just put $100 toward EF to have a little satisfaction seeing that grow and then put the rest toward the high c.c. i would also personally not use the BoA card to earn the cash, although that's enticing, until the card was paid off in full and i was paying off the balance monthly. i think the card balance will never go away if you continue to use it just to get the cash reward. good luck with your decision!

  3. Beawealthywarrior Says:
    January 5th, 2013 at 04:39 pm 1357403996
    1357403996

    I follow Dave Ramsey, first I would tell you to list all your cards from lowest balance to highest. Then I would pay off the one with the lowest balance regardless of interest rate or cash back rewards, etc.... This should give u a feeling of accomplishment It's all about changing your behavior. Good luck with your decision, at least you're not blowing that $900 on something u don't need.

  4. PNW Mom Says:
    January 5th, 2013 at 05:39 pm 1357407574
    1357407574

    Normally I would say pay off the one card and be done with it. But I think in this case, since it is 0% interest until Aug, I would put it towards CC3....or you could put $500 towards CC3 and make it an even $1000 oweing and put $400 towards your EF....let us know what you decide...good luck!

  5. LuckyRobin Says:
    January 5th, 2013 at 05:50 pm 1357408248
    1357408248

    I would put it on CC3. Having it paid off by the end of the month means one less debt that is charging you interest to worry about. I would not make room on one card just to get points. That will just encourage you to charge it up again and is not a good thing to do while in debt repayment mode.

  6. Looking Forward Says:
    January 5th, 2013 at 05:52 pm 1357408365
    1357408365

    I vote 20% cc.

  7. twest Says:
    January 5th, 2013 at 06:26 pm 1357410389
    1357410389

    I agree that you should pay that 20% card. Like LuckyRobin said you can have one less debt by the end of the month and that would be great! You can then allocate any extra monies to the other card and EF after that.

    Congratulations on your progress so far!

  8. Petunia 100 Says:
    January 5th, 2013 at 06:27 pm 1357410438
    1357410438

    How much do you have in your E Fund right now? Depending on your answer, that might be the best place for your extra money. If it is not needed in your E Fund, then CC3 costing you 20% is the best place.

    If you want to earn credit card rewards, have you considered getting a new rewards card and using it only for things you would buy anyway? Pay it in full each month (or even more often with online bill pay). Alternatively, you could do a balance transfer with a better rate than you are currently paying on your B of A rewards card. Once the transfer is complete and there is no outstanding balance, you can use it. However, do not use it to earn rewards as long as it has a balance. You pay interest from the day you make a purchase (no grace period if you are carrying a balance). This will cost you more than the rewards you earn.

  9. MonkeyMama Says:
    January 5th, 2013 at 08:09 pm 1357416598
    1357416598

    I'd pay off cc3 (20%). 0% card could be used in an emergency. I see absolutely no point to have an emergency fund while paying 20% interest.

    BUT, What is the interet on the B of A? Usually rewards cards don't have very good interest rates. Regardless of your answer, paying off a card that is charging 20% interest is probably your best bet. Getting rid of the smaller cards so you can focus on the big one. Unless the interest rate is particularly horrific on the B of A.

  10. Shiela Says:
    January 5th, 2013 at 08:25 pm 1357417540
    1357417540

    I would pay CC3 first. I don't understand why anyone would suggest otherwise.

  11. patientsaver.com Says:
    January 5th, 2013 at 09:33 pm 1357421594
    1357421594

    CC3. Way too much interest to be charged! don't be sidetracked/tempted by rewards on another card. Stay focused on paying down that darn debt!

  12. Amber Says:
    January 5th, 2013 at 09:48 pm 1357422520
    1357422520

    Thanks everyone, it seems as thought CC3 wins it and after checking I actually owe $1069.10, not the $1500 I initially thought, so this card will be paid off by the 15th Big Grin

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