Credit card payment order. Which one first?

[Nervous Guy]

Are all bills fans are super rich, make the right decisions, and marry hot 10 wives, except me?

,

duh...of course we are...hang in there, everything will be fine once you declare bankruptcy.

 

Seriously, I made a lot of !@#$ed up financial decisions back in the day, learned things the hard way...but am better for it.

[Just Jack]

I bought a new mattress a couple years ago, got the stores credit card, with the 12 month interest free financing. Simply took the final purchase price, divided by 12, and sent that in for payment each month. Boom! New mattress and didn't pay interest. Still have the credit card too, stored away at home, not in my wallet.

[Clippers of Nfl]

,

duh...of course we are...hang in there, everything will be fine once you declare bankruptcy.

 

Seriously, I made a lot of !@#$ed up financial decisions back in the day, learned things the hard way...but am better for it.

I have an appointment with the bankruptcy office Friday at 10am.

 

Bankruptcy was a much better option for me at this time. He said he would charge me $600. The same amount on the 2nd card.

Im happy now.

I bought a new mattress a couple years ago, got the stores credit card, with the 12 month interest free financing. Simply took the final purchase price, divided by 12, and sent that in for payment each month. Boom! New mattress and didn't pay interest. Still have the credit card too, stored away at home, not in my wallet.

$8.34 a month for 12 months is easy JJ. I probably would have just paid that in full.

[Kevbeau]

Just want to make sure I have this right. You have 5 months salary banked and put a bed on credit (%19?)

[May Day 10]

Its tough. I have said it many times before... but public schools should teach Personal Finance. It is like the most important aspect of our society and we are thrown out there with access to high interest credit cards and student loans, car loans, etc with little training or common sense.

 

Many parents lack the knowledge and common sense too, so it isn't like it gets passed down. My parents just forbid me from doing anything credit-wise. Couldnt do Columbia House, Credit Cards were fobidden, etc. Finances weren't talked about. We didn't have much money and my parents were pretty frugal.

 

So I got out of college (with Student loan debt) and had to touch a hot stove a number of times and had to really take a step back and do a lot of research on my own. Was also very fortunate to have a decent enough paying job. Climbed out and now Personal Finance/investing is kind of a hobby, and I still learn things all the time. Getting out of debt is actually the easiest/least complicated part.

[Clippers of Nfl]

Just want to make sure I have this right. You have 5 months salary banked and put a bed on credit (%19?)

Yeah and no. If I pay everything in full it will cut into my 5 months. So I dont really want to do that. But I do have it.

I never said I put the bed on 19% credit.

I paid most debit and 600 on credit. The lower apr one. That one had zero balance until this last Saturday.

 

No one on tbd ever carries a balance, like EVER?

 

Keep in mind I dont have 8 credit cards with 5k maxed out on each. Just so you guys know.

Its tough. I have said it many times before... but public schools should teach Personal Finance. It is like the most important aspect of our society and we are thrown out there with access to high interest credit cards and student loans, car loans, etc with little training or common sense.

 

Many parents lack the knowledge and common sense too, so it isn't like it gets passed down. My parents just forbid me from doing anything credit-wise. Couldnt do Columbia House, Credit Cards were fobidden, etc. Finances weren't talked about. We didn't have much money and my parents were pretty frugal.

 

So I got out of college (with Student loan debt) and had to touch a hot stove a number of times and had to really take a step back and do a lot of research on my own. Was also very fortunate to have a decent enough paying job. Climbed out and now Personal Finance/investing is kind of a hobby, and I still learn things all the time. Getting out of debt is actually the easiest/least complicated part.

Not true. Forget about me. 2k is really nothing compared to a lot of americans struggling big time. If I was struggling like crazy, I would not have put my question out there. Not ashamed at all.

 

Getting out of debt is not easy if you have a mediocre job, have health issues, or just not very intelligent.

 

I completely disagree with you here.

[May Day 10]

I don't mean 'easy'... just not complicated. The basic premise, choices/options, and 'physics' of it are fairly simple.

 

 

If you are on the 'plus side' of money and there are a million ways to spend it and investment vehicles... I am still learning. It is complex and numerous methods.

Edited August 6, 2015 by May Day 10

[KD in CA]

Yeah and no. If I pay everything in full it will cut into my 5 months. So I dont really want to do that. But I do have it.

I never said I put the bed on 19% credit.

I paid most debit and 600 on credit. The lower apr one. That one had zero balance until this last Saturday.

 

No one on tbd ever carries a balance, like EVER?

 

I don't get it either. You have money in some type of saving vehicle (presumably earning less than 1%) but are paying credit card interest rates of 9-19% on $1900? If that's the case, you've misunderstood the 'have six months salary in savings' advice and need to write a check for the full credit card balances today.

 

In the unlikely event you have a subsequent 'emergency' before you replenish your savings, you have two credit cards with the full lines available to utilize.

[Johnny Hammersticks]

Sorry for stealing your thunder Clipp, but I need some professional financial assistance. Having the summer off, my reading habits have gotten out of control. Anyway, I have accrued $1.45 in late fees at the local library. I don't want to tell the wife, as I will probably have to sleep on the couch for a week. Any advice?

[Nervous Guy]

Sorry for stealing your thunder Clipp, but I need some professional financial assistance. Having the summer off, my reading habits have gotten out of control. Anyway, I have accrued $1.45 in late fees at the local library. I don't want to tell the wife, as I will probably have to sleep on the couch for a week. Any advice?

try panhandling outside the library...it's pretty lucrative.

[Captain Caveman]

Maybe you could start charging to use your shower?

[Very wide right]

Here

 

Very roughly (doesnt take into account 1st month or final month interest)

month 1

Pay $400 to card 1, $25 to card 2

 

Card 1 $900 Balance, $14.25 in interest

Card 2 $575 Balance, $4.31 in interest

 

Month 2

Card 1 $514.25 Balance, $8.14 in interest

Card 2 $554.31 Balance, $4.16 in interest

 

Month 3

Card 1 $122.39 Balance, $1.94 in Interest

Card 2 $522.47 Balance $4.00 in interest

 

Month 4

Card 1 Paid off

Card 2 $225.80 Balance, $1.69 in Interest

 

Month 5

Card 2 paid off with $227.49 payment

 

$38.49 paid in interest

 

 

Option 2:

Pay $25 to Card 1, $400 to Card 2

 

Month 1

Card 1 $1275 Balance $20.18 in interest

Card 2 $200 Balance $1.50 in interest

 

Month 2

Card 1 $1070.18 Balance, $16.94 in interest

Card 2 Paid Off

 

Month 3

Card 1 $662.12 Balance, $10.48 in interest

Card 2 Paid Off

 

Month 4

Card 1 $247.60 Balance, $3.92 in interest

Card 2 Paid Off

 

Month 5

Card 1 Paid Off with $251.52

 

$53.02 Paid in interest

 

 

The effects are minimized because you are paying over 20% of your total balance every month

 

edit: Never mind, $200 a month makes it more crucial to attack the 19% first and minimum payment the 9%.

What about the charging that he's gonna do in the mean time.Don't forget to factor that in...........Oh yes he will

Edited August 6, 2015 by Very wide right

[Clippers of Nfl]

What about the charging that he's gonna do in the mean time.Don't forget to factor that in...........Oh yes he will

Says who? 3 months ago all cards were at zero balance.

Even the 2nd card had a zero balance just 6 days ago.

[Clippers of Nfl]

 

I don't get it either. You have money in some type of saving vehicle (presumably earning less than 1%) but are paying credit card interest rates of 9-19% on $1900? If that's the case, you've misunderstood the 'have six months salary in savings' advice and need to write a check for the full credit card balances today.

 

In the unlikely event you have a subsequent 'emergency' before you replenish your savings, you have two credit cards with the full lines available to utilize.

You are 100% correct. If you deduct the 1900 all at once, I dont have 5 full months of salary.

 

Anyway $40 bucks interest is not going to make me or break me. Im doing the 5 month plan option.

 

Thanks to all and to all a good night.

[Just Jack]

Sorry for stealing your thunder Clipp, but I need some professional financial assistance. Having the summer off, my reading habits have gotten out of control. Anyway, I have accrued $1.45 in late fees at the local library. I don't want to tell the wife, as I will probably have to sleep on the couch for a week. Any advice?

Hang onto the book until the library has one of their "late fees forgived" returns periods. Some libraries around here do one every 10-20 years.

[Clippers of Nfl]

Hang onto the book until the library has one of their "late fees forgived" returns periods. Some libraries around here do one every 10-20 years.

That's what he gets for reading books in the first place.

Guys dont read books. Just women.

[Captain Caveman]

That's what he gets for reading books in the first place.

Guys dont read books. Just women.

Reading women is just as difficult.

[SDS]

I have small credit card debt.

One card has 1300 debt on it. 19% interest on it.

One card has 600 debt on it. 9% interest.

 

Which one gets eliminated first? Assuming a combined payment of $200 each month for both cards. (not 400) Minimum payments are $25 for one and $20 for the other one.

 

The only reason I have this much is because I just bought a bed over the weekend.

 

Anyway finance gurus, which one should I kill first?

This will come across as insulting, but please don't take it that way. Think of this as an intervention.

 

After reading this thread, it is clear that you are TERRIBLE at math and logical reasoning. Scary-assed terrible. $1900 of credit card debt is the least of your worries at the moment.

 

You cannot be fixed through a message board, but follow the advice given by KD. Whatever he has written, just do that.

 

After that is accomplished you need to enroll in some sort of financial education course at your community college, or buy some books on basic financial literacy. You will bleed far more money than what it would cost to get a simple education on these matters. The world is going to hurt you until you figure out what the hell is going on. Of course, you don't know what you don't know and that's what you should be afraid of.

 

To use an analogy, think of it this way. You are down by a touchdown and there's three seconds left on the clock. You are 40 yards from the end zone. Your financial logic is equivalent to handing it off to the fullback over the right guard and not knowing what's wrong with the play call.

 

Best of luck.

[Johnny Hammersticks]

This will come across as insulting, but please don't take it that way. Think of this as an intervention.

 

After reading this thread, it is clear that you are TERRIBLE at math and logical reasoning. Scary-assed terrible. $1900 of credit card debt is the least of your worries at the moment.

 

You cannot be fixed through a message board, but follow the advice given by KD. Whatever he has written, just do that.

 

After that is accomplished you need to enroll in some sort of financial education course at your community college, or buy some books on basic financial literacy. You will bleed far more money than what it would cost to get a simple education on these matters. The world is going to hurt you until you figure out what the hell is going on. Of course, you don't know what you don't know and that's what you should be afraid of.

 

To use an analogy, think of it this way. You are down by a touchdown and there's three seconds left on the clock. You are 40 yards from the end zone. Your financial logic is equivalent to handing it off to the fullback over the right guard and not knowing what's wrong with the play call.

 

Best of luck.

/thread

[Clippers of Nfl]

This will come across as insulting, but please don't take it that way. Think of this as an intervention.

 

After reading this thread, it is clear that you are TERRIBLE at math and logical reasoning. Scary-assed terrible. $1900 of credit card debt is the least of your worries at the moment.

 

You cannot be fixed through a message board, but follow the advice given by KD. Whatever he has written, just do that.

 

After that is accomplished you need to enroll in some sort of financial education course at your community college, or buy some books on basic financial literacy. You will bleed far more money than what it would cost to get a simple education on these matters. The world is going to hurt you until you figure out what the hell is going on. Of course, you don't know what you don't know and that's what you should be afraid of.

 

To use an analogy, think of it this way. You are down by a touchdown and there's three seconds left on the clock. You are 40 yards from the end zone. Your financial logic is equivalent to handing it off to the fullback over the right guard and not knowing what's wrong with the play call.

 

Best of luck.

I dont know if I should be thanking you for the advice, becaue I dont think it really applies to me.

 

Again a week ago, I had 1k in debt. Forget that. Wrong word. 1k on a credit card.

Just 3 months ago I had zero credit card debt. (like everyone else on tbd)

 

I've said a few times already that, I, like all you finance good guys, like to have my cards clean with zero on them. Yes Im like that too.

 

So who is or are the real boneheads? Me or all of you?

 

I hope you didnt think I was being serious about the bankruptcy. That was a joke.

 

My credit counselor said my credit was very very good. 550, 551, or 555 is my credit score. I think it's 50 points under the best. So I must be doing something right.