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Tuesday, December 6, 2022   
 

Payment Order
by Scott Bilker
Scott Bilker is the author of the best-selling books, Talk Your Way Out of Credit Card Debt, Credit Card and Debt Management, and How to be more Credit Card and Debt Smart. He's also the founder of DebtSmart.com. More about and DebtSmart can be found in the online media kit.
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Scott Bilker

Scott,
I have 3 credit cards with a total debt of $25000. I am paying $950 a month (double the minimum amt due). Should I repay the highest interest card off first, or should I repay the lowest interest card off first and transfer the balance from the higher interest card?
--Nadiyah


Answer
Nadiyah,
Always, always, always, pay the highest interest rate first. Paying in any other order will definitely cost more money.

I have heard many "experts" suggest to pay the shortest term loans first or the lowest balance cards first but they're wrong, absolutely wrong!

Pay the highest rates first.

I guess you can tell that I really want to get that point across.

Also, if you can you should transfer from the high rate card to the low rate card. Be careful to make sure, by calling the bank first, that you will get the low rate when you do the transfer. Sometimes the transfer rate may be greater than your current low rate.

By the way, great question!

Talk to you later.

Great to hear that you're able to pay off the debt--keep up the good work!

Scott 

--End--

 

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