Which credit card should I pay down with my tax return?

[RandySF]

Last edited Tue Feb 11, 2014, 09:17 PM - Edit history (1)

I've been back to work for less than a year after after being unemployed and racked up a sizable, though not gargantuan credit card balance, which I've been willing down for some time. And, it turns out, I am getting a decent tax return. Right now I have two card balance of roughly equal amounts. Card one has a 10.9% APR, but the balance is not large enough for it to hurt me. Card two currently has a 0% APR, but will hit as high as 18% if I don't get to work on it. Which one should I try to dent?

[Lil Missy]

1. Card Two, or

half and half

[enough]

2. Look at your statement and find out when that 0% promotion ends.

Then figure out your strategy for paying off the entire balance right before the 0% rate ends. Can you do that? If not, start paying off as much as you can on that card before the rate jumps to the stratosphere.

[dixiegrrrrl]

3. Agreed, pay of the 18% one

and pay interest plus whatever you can spare on the lower balance one.
Once the 18% card is paid, it will be the equivelant of getting FREE money.
then pay off the last card
THEN
the same amount of money you used to pay off the lowest card put in a piggy bank every month.
Seriously.
That nest egg will save your butt some day.

[fadedrose]

4. Put 1/3 down on the 10.9% and 2/3 down on the other

You will feel better if you get them both down.