What bill should i pay?

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Mayfriday0529

Diamond Member
Sep 15, 2003
7,187
0
71
So I have an extra $750 and i want to use it to pay a bill, but which one?

School loan
Original Amount 6600
Due 1197
Minimum payment 150
%14

CC 1
Original Amount 1800
Due 1401
Minimum Payment 31
%18

CC 2
Original Amount 2000
Due 1610
Minimum Payment 49
%18

I thinking of putting the money into the school loan and finally finishing it off.
Taking the 750 + 150 due = 900 and having only $297 left on it.
 
T

Titan

Golden Member
Oct 15, 1999
1,819
0
0
Mathematically, some of each.

If it were me, I'd prolly be so mad I had a running balance on a cc that i'd mug people to knock it out of the park.

My advice: hit the student loan and obliterate it next time.
 
M

Mayfriday0529

Diamond Member
Sep 15, 2003
7,187
0
71
Originally posted by: mzkhadir
all of them in a timely manner
Click to expand...


yeah, i know, but i'm thinking if i kill the school loan which is 150 amount, i can use the extra income after to pay off the CC's

 
O

oboeguy

Diamond Member
Dec 7, 1999
3,907
0
76
CC2 seems the obvious choice. Highest amount due + highest interest, no brainer.
 
B

BAMAVOO

Diamond Member
Oct 9, 1999
8,087
41
91
No, you do smallest to largest and once you pay off the first one just roll the extra money to the larger one.

/thread
 
cKGunslinger

cKGunslinger

Lifer
Nov 29, 1999
16,408
57
91
CC1 - highest interest + smallest balance. Knock it out quick and begin appling your regular payments to the other CC.
 
M

Mayfriday0529

Diamond Member
Sep 15, 2003
7,187
0
71
Originally posted by: cKGunslinger
CC1 - highest interest + smallest balance. Knock it out quick and begin appling your regular payments to the other CC.
Click to expand...


Personally i'm scared of doing that. X-mas is around the corner...
I don't even that the Cards anymore i ripped them up back in march.

 
O

oboeguy

Diamond Member
Dec 7, 1999
3,907
0
76
Well I still think you're totally nuts to not that dough into the CC2 bill. I hope you like wasting money.
 
Slew Foot

Slew Foot

Lifer
Sep 22, 2005
12,379
96
86
Transfer credit cards to a new card with 0% interest on balance transfers. Pay off school loans (you have a 14% interest on your loan? I have 2.5%)

/thread
 
M

Mallow

Diamond Member
Jul 25, 2001
6,108
1
0
Originally posted by: Slew Foot
Transfer credit cards to a new card with 0% interest on balance transfers. Pay off school loans (you have a 14% interest on your loan? I have 2.5%)

/thread
Click to expand...
This is a great idea as long as you don't actually use the cc with the 0% for purchasing new items. They screw you this way but I don't feel like explaining how they do it :-\
 
E

Eeezee

Diamond Member
Jul 23, 2005
9,922
0
76
Can't you upgrade your computer or something instead?

But in all seriousness, apply it all to one of the credit cards. You'll save more money this way (they are higher interest and have more due)
 
newParadigm

newParadigm

Diamond Member
Jul 30, 2003
3,667
1
0
Pay CC 2, because it has the higher interest, and the highest amount. Actually thoug, just pay it into either CC 1 or CC 2, it won't matter whcih, or how mcuh is allocated to etiher, beccause they both have the same interest

EDIT:

Pay off teh student loan, and get a new card that has very low introductory APR, tranfer the balance of both the old cards. DO NOT USE THE NEW CARD FOR PURCHASES. Because your payments will go towards the parts of the debt that has the lower interest last, so you will end up paying off the balance trasnfer, and accumulate the new purchases as debt, which are charged at a much higher rate than the intro APR for balance transfers. If you dont use a CC anymore then great, just get a new card transfer the balances, and cut the card...

~new
 
jadinolf

jadinolf

Lifer
Oct 12, 1999
20,952
3
81
Originally posted by: Jnetty99
So I have an extra $750 and i want to use it to pay a bill, but which one?

School loan
Original Amount 6600
Due 1197
Minimum payment 150
%14

CC 1
Original Amount 1800
Due 1401
Minimum Payment 31
%18

CC 2
Original Amount 2000
Due 1610
Minimum Payment 49
%18

I thinking of putting the money into the school loan and finally finishing it off.
Taking the 750 + 150 due = 900 and having only $297 left on it.
Click to expand...

I don't see any computer gear. Go to HD immediately!
 
M

Mayfriday0529

Diamond Member
Sep 15, 2003
7,187
0
71
Alright, need more advice.
I took the 750 and applied to the school loan... by the way the % is high because its all they would give due to my credit history back in 99.
Now i have $1725 available and going to apply it to the two CC's
Should i equally divide the money and have both accounts down to about $638 each or just pay off one completely and use the extra money into the other?
 
dullard

dullard

Elite Member
May 21, 2001
25,974
4,584
126
Mathematically it was dumb to pay off the student loan. (1) You are losing $2.50 a month just on interest until the CCs are fully paid off. (2) You lose the tax benefits of the student loan (~$2 per month). (3) Many creditors would rather see student loans than CC balances. (4) Depending on your CC limits, you may be hurting your credit score with those CC balances - meaning many of your monthly bills may be are higher (think car insurance, etc).

But, now you can't fix that mistake.

As for the credit cards, I'd pay the one with the highest (amount due)/(credit limit) ratio. And since you already seem to have a bad credit score and have trouble with money, I would not follow the advice posted above to get more credit cards.

More importantly, keep up the good work in getting those limits to zero. You clearly have troubles with spending too much money. Your post about Christmas is worrysome; it hints that you might fall back into those horrible habits. The best advice is to give NO presents this year, buy no decorations, do no travelling, etc. Go cold turkey with your spending habits. If you can survive Christmas without spending, you should be able to survive anything.
 
M

Mayfriday0529

Diamond Member
Sep 15, 2003
7,187
0
71
Originally posted by: dullard
Mathematically it was dumb to pay off the student loan. (1) You are losing $2.50 a month just on interest until the CCs are fully paid off. (2) You lose the tax benefits of the student loan (~$2 per month). (3) Many creditors would rather see student loans than CC balances. (4) Depending on your CC limits, you may be hurting your credit score with those CC balances - meaning many of your monthly bills may be are higher (think car insurance, etc).

But, now you can't fix that mistake.

As for the credit cards, I'd pay the one with the highest (amount due)/(credit limit) ratio. And since you already seem to have a bad credit score and have trouble with money, I would not follow the advice posted above to get more credit cards.

More importantly, keep up the good work in getting those limits to zero. You clearly have troubles with spending too much money. Your post about Christmas is worrysome; it hints that you might fall back into those horrible habits. The best advice is to give NO presents this year, buy no decorations, do no travelling, etc. Go cold turkey with your spending habits. If you can survive Christmas without spending, you should be able to survive anything.
Click to expand...

good stuff... Actually the Student Loan is no longer technically consider a school loan, it was a technical school which no longer around so i dont get a 1098 at the end of the year.
About Credit i'm pretty good now, i have a 700 Fico maybe better but i do have a debt to income ratio of 52% hopefully by getting rid of these three loans it should come down a little.

X-mas umm two gifts only, mom and grandma and i'm already saving up for it. no personal gift for myself.
 
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