Credit Card Question

[Deleted User]

abaka said:

Deleted_User said:

Pumping money into the smallest debt might seem like a nice idea for the "snow balling" method but it's not cost effective, pay down the biggest interest debt as much as you can, pay the minimum on the lowest interest rates and you will save more money - paying the minimum on the debt with most interest just means you get more debt

The only card I do pay interest on is my second lowest balance (and it's my lowest balance APR so not huge amounts) so it will be cleared fairly soon anyway.

I just feel snowballing will work best for me, the quick wins and then being able to pour the money into the next card will do wonders for my own "Mental Outlook" around these debts.

Fair enough if it works for you, for me the idea of paying a penny of interest more than I have to and having the debt lasting longer is never appealing. Clearing a card at 0% rather than an interest bearing card is not good financially even if it means you get a "win" by clearing a smaller debt

abaka

Deleted_User said:

abaka said:

Deleted_User said:

Pumping money into the smallest debt might seem like a nice idea for the "snow balling" method but it's not cost effective, pay down the biggest interest debt as much as you can, pay the minimum on the lowest interest rates and you will save more money - paying the minimum on the debt with most interest just means you get more debt

The only card I do pay interest on is my second lowest balance (and it's my lowest balance APR so not huge amounts) so it will be cleared fairly soon anyway.

I just feel snowballing will work best for me, the quick wins and then being able to pour the money into the next card will do wonders for my own "Mental Outlook" around these debts.

Fair enough if it works for you, for me the idea of paying a penny of interest more than I have to and having the debt lasting longer is never appealing. Clearing a card at 0% rather than an interest bearing card is not good financially even if it means you get a "win" by clearing a smaller debt

No, I get what you're saying and previously I've had the same belief and this is the first time I've ever paid interest....but what I've done before hasn't worked hence why I'm in 22k worth of credit card debt!! 

What I have done is focus on bigger debts and then continue to spend on smaller debts....My issue is I'm sick of having to worry about debt on so many creditors....I want to reduce the amount of people I pay too each month, not how much I pay!! So Hopefully this new approach will help me. If I was paying high amounts of interest and it was the card that wasn't going to be cleared soon I would probably be thinking different though.