Hello! I hope I can post this question here, apologies if I have erred!
Here is my situation. First let me say I have a lot of embarrassment about my credit card situation but I’m working on it and have been meticulously budgeting to get everything under control. I have issues with math but even worse, no one ever really has taught me to manage my finances and I’m self taught, though recently I hired a coach who is really helping me.
I have two credit cards and I am wondering how to optimize paying them off. Should I throw more at the high interest one to pay that off and then target my 0 interest card? The problem w the 0 interest card is I’m on a 21 month deadline to pay it off.
Current budget for credit card payoff: $700/ mo
(some months I’ll have more but this is the minimum I’m allocating)
Card 1:
0% APR for 21 months
Time to payoff: 21 months
Balance: $7900
Min: not sure but probably around 200, it’s a new card
Card 2:
15.15% APR
Time to payoff: ideally I would like to pay off within 24-36 months
Balance: $9400
Min: currently 200/mo
Current math:
Card 1: I’ll pay off on time in 21 months at payment of $377/ mo
Card 2: I’ll payoff in 36 months at monthly payment of 292/ mo
What do you think of this? Is there a world where I should pay more on card 2 to save on interest and snowball that into card 1?
Thank you so much.
Here is my situation. First let me say I have a lot of embarrassment about my credit card situation but I’m working on it and have been meticulously budgeting to get everything under control. I have issues with math but even worse, no one ever really has taught me to manage my finances and I’m self taught, though recently I hired a coach who is really helping me.
I have two credit cards and I am wondering how to optimize paying them off. Should I throw more at the high interest one to pay that off and then target my 0 interest card? The problem w the 0 interest card is I’m on a 21 month deadline to pay it off.
Current budget for credit card payoff: $700/ mo
(some months I’ll have more but this is the minimum I’m allocating)
Card 1:
0% APR for 21 months
Time to payoff: 21 months
Balance: $7900
Min: not sure but probably around 200, it’s a new card
Card 2:
15.15% APR
Time to payoff: ideally I would like to pay off within 24-36 months
Balance: $9400
Min: currently 200/mo
Current math:
Card 1: I’ll pay off on time in 21 months at payment of $377/ mo
Card 2: I’ll payoff in 36 months at monthly payment of 292/ mo
What do you think of this? Is there a world where I should pay more on card 2 to save on interest and snowball that into card 1?
Thank you so much.