What debt should I pay first?

I%26#039;m getting roughly $4000 in an income tax refund. I have a lot of debt, and I%26#039;m not sure what I should pay first.

I owe $6500 on a credit card with 14% interest ($75 interest per month)

$750 on a card with 22% interest ($14 interest per month)

$90 on a card with 20% interest

$1700 on a school loan - I just got it, so I haven%26#039;t paid any interest yet, but it will start acrruing soon. The interest is 14% and I%26#039;m not required to pay anything until after school

I was thinking about paying off the $750 and $90 and then putting the rest towards the $6500, but yet I%26#039;m worried about the $1700 loan. However, the $6500 and the $1700 have the same interest, so I would think that you would pay more interest on a higher balance, so I should pay the $6500, correct? What should I pay?

What debt should I pay first?

Look at it this way, you should pay on the highest bill first due to the larger amount. In 1 year this is the interest on the 3 cards.

$6500 card is $910

$750 card is $165

$90 card is $18

You want to pay off highest interest first. So go with the $750 card. Trust me. All your money is gaining interest, but this money is gaining more quickly, than the other. It%26#039;s almost apples and oranges because you%26#039;ll be gaining so much interest on the $6500 account, that after your $750 paid, you need to pay off the $6500 one. If you would like a little guidance and help, I%26#039;m bored at work *i%26#039;m a banker* you can email me via yahoo answers and I%26quot;ll give you my work address

What debt should I pay first?

Those are outrageously high interest rates!

Here are some programs you can use to figure out the best way to pay off multiple debt, called %26quot;snowballing%26quot;:

http://www.whatsthecost.com/snowball.asp...

http://www.creditshack.org/calc/snowball...

You can input the balances and interest rates for each debt, and also play around with how much money you have available to put toward paying them all off, and it will show you how to do it and how long it will take.

Or, you can put your $4k refund check towards your debt all at once, assuming that your savings and emergency funds are in fine shape. Pay off the $750 and $90 cards completely, cancel those accounts and destroy those cards, and put the rest of it on the $6500 card. Your thinking is correct.

As a general rule, always pay off the debt with the highest interest rate first as opposed to the debt with the highest balance. This will save you the most money on interest charges.

What debt should I pay first?

No contest. Though it can be more confusing to keep track of, you should always pay the highest interest debts off first, while paying the minimum balance on the others. If the interest is the same, then it doesn%26#039;t matter - if you want to pay the lower balance off first to keep it more organised then that is fine.

What debt should I pay first?

I would pay the $750 %26amp; $90. %26amp; $1700. then aply the other $1400 towards the 6500 balance. Then you can increase the payments towards the balance and it will drop very quick.

What debt should I pay first?

My solution is to contact your credit card companies and renegotiate your interest rate and see if they can come down. You can also go to a financial adviser to help you set up a payment plan and help you eliminate your debt there trained to help in this situation. I wish you luck

What debt should I pay first?

I would transfer the $750 and the $90 to the 14% card, then call and ask them to lower the rate for you, THEN pay off that one as soon as possible. Usually when you call and speak directly with them, they%26#039;ll bring down the rate at least by a few points. And, if not, it doesn%26#039;t hurt to try. Good luck!

What debt should I pay first?

4000$ minus 1000$ emergency funds so no more slave cards.

3000$ minus 90$ u just won a battle

%26quot; %26quot; %26quot; minus 750$ u just won 2nd battle

do it make u feel better? should

u have 2160$ left pay it down on 6500$ bill.

NOW get on abudget and make ur money scream as u pay bills.

if u are with the same company , go to payroll and adjust ur withholding for the OVER payment/loan to IRS.

4000 divide by 24 pay checks is 166$ u can put on big bill and have it paid off in the year. or get 2nd job and pay off bills.

visit dave ramsey.com to learn ur hard lessons from others mistakes .

easier cheaper faster smarter less painful.

note : interest isn%26#039;t the problem, behavior is.

What debt should I pay first?

High cost debts should be paid first to save on costs.

What debt should I pay first?

Pay the credit card, highest interest rate first.

What debt should I pay first?

Do you have an emergency fund of two or three months expenses set up, if not, do that first. After that pay them in the order of higher interest first down to lowest interest last.

1. Emergency fund

2. 22% interest card

3. 20% interest card

4. 14% interest card

5. 14% interest loan