Should i clear the lowest or the highest amount first?

menotmoneyexpert

Hey need your opinion. I have decided to move some money into any empty credit card. Although not sure which of my card i should transfer.
I have one card that is nearly 3000 with 2% monthly interest and another card is 800, 2.65%. I can only transfer 450 which should i clear first. I started with the 800 already. I paid 100 on top of my monthly payment. I am now wondering if i should of tried to bring the 3000 instead of trying to clear the 800. What do you think?

The new credit card 6.9%until balance is paid off + 2.5 handling fee.

adouglasmhor

Let me see if I have this right, you are thinking of transferring from paying 2.65% or 2% to 6.9% ? is the 6.9% per annum or something you have not put in your post?

menotmoneyexpert

2.65% per month and the 6.9% for the whole amount until the whole is paid off. No more additional monthly payment. It is a good deal isn't it?

adouglasmhor

Always clear the highest interest first if you can do so without incurring penalties anywhere.