Should i pay a high debt with low interest or low debt with high interest first?

Question

i have a couple credit cards some with more balance but like 3% interest then the other with a lower balance but like a 9% interest which should i pay off first?

Answer 1

Low debt with high interest. It will improve your credit and help you keep a low interest rate with your other debt. Plus, if it is a low debt, you will be able to get rid of it fast and accomplish something.

Answer 2

Find a 0% interest for six months card, transfer all other cards, and pay the c**p off your existing debt.  When six months is over, either you're paid off or you are at least consolidated. Then pay everything you can, and don't use the card til you have a zero balance.  Cut up the other cards.  It's easy to use cards that still have credit left on them.  Have ONE card for emergencies...not pizza...and try not to use it for 6 months!!!

Answer 3

Always pay off the highest interest rate first.  The quicker you pay it off, the less money goes to interest.

Answer 4

Low debt high interest for sure. Get it out of the way and then you can tackle the big one. If you try to do the big one first, the balance with the higher interest will climb faster.

Answer 5

is this a trick question?

financial answer is Low debt high interest.

That is a no brainer.  Some people will consolidate their low debt and put them on the low interest cards.  Others will pay off the low debt.  I recommend paying off,  credit card interest is nothing more then used toilet paper; you want to get rid of it as quickly as possible and the waste is just as bad.

Credit answer is; after you pay off the low debt, do not close the cards just don't use them often.  Never use more the 10% of the limit and pay off the balance before 30 days of the purchase.  This way there is no interest paid and your scores stay solid.

Overpay on your higher debt cards and get them paid off as quickly as possible.  but remember to keep them open.

Answer 6

pay off the high interest card first