Is it better to pay off my credit cards with one big payment or smaller payments?

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  • Is it better to pay off my credit cards with one big payment or smaller payments?


Answer #1 | 23/12 2013 07:19
it's best to pay off fully every month,,, so one big payment,, then use them for every day things like groceries and continue paying off fully monthly. having high balances seriously messes up a credit score,, ,don't do it,,, make student loans instead f you need money,, better for credit. always keep at least $1,000 in savings for emergencies though.
Answer #2 | 23/12 2013 07:20
The sooner you pay it off, the better. They charge you a huge interest rate, something above 15%. Money in savings earns you 1% or so, so you are much better off using that money to pay off your credit card bills.
Answer #3 | 23/12 2013 10:02
There is no advantage to paying off credit cards in small payments. There are no extra score points for carrying balances and paying interest. Pay the statement balance in full every month. That builds credit and avoids interest. You need to look at the interest rate you are paying on the credit card and the interest you are receiving on the savings account. It should be obvious that you are paying out more than you are taking in. You should also look at the interest rates on those student loans. Don't be so quick to take student loan money to pay off credit cards and other non-education debts. It may seem like easy money now, but eventually you will have to pay off those student loans. There are a lot of folks with HUGE student loan debt and degrees that won't get them enough income to pay off the student loans.
Answer #4 | 23/12 2013 11:45
Short-term (priority order): 1. Ensure you are paying all of your bills (incl. CC minimum payments) on time 2. Build up (and maintain) a $1000 emergency fund as quickly as possible.. you need it to weather any storms (car maintenance, etc) that don't put you further in debt. 3. Work to pay off your credit cards as quickly as possible, with priority to those with low balances and/or high rates.. as others have said - doesn't matter all at once or small payments.. fewer payments are less work 4. Cut back as much as possible on spending and/or get extra job(s) until you can get the above done Long-term: A) Always pay your credit card in full every month B) Continue to build up that emergency fund to be 6 months living expenses.. that's a lot, and it will take a while, but create a separate Money Market Savings Account and just autopay whatever you can fit in your budget and it'll take care of itself before you know it C) Use a credit card that gets cash rewards (and no annual fee) D) Simplify to perhaps 2-3 cards (I use one for basically everything).. simple is better for tracking your finances E) Pay off student loans last - they're low interest, low payment, and tax free interest.. but still pay them off early if you can F) There are many (typically those who haven't used credit responsibly in the past) who think you shouldn't borrow a cent.. no credit cards, only debit. That's unreasonable, IMO. Credit cards have better liability / anti-fraud protection than debit cards, provide more predictable payments (same time every month, you know exactly what you spent overall, etc), are not directly linked to a bank account, and you don't have to pay a penny in interest if you pay in full every month (see A) G) The only thing you should pay a penny of interest on (ever) is a mortgage, student loans, and perhaps a vehicle (but only to buy a reasonably priced, responsible form of transportation.. i.e. not a new car.. once it's paid off, keep driving it and save the payments to pay cash next time) Do the above and your credit score will take care of itself. Now is the time to be especially frugal, and quit paying interest on any consumer items. Create a budget where you spend less than you make (save the rest), and stick to it. I use a program called "GoodBudget" to track mine, and it's incredibly helpful, especially if you have a smartphone. Good luck!
Answer #5 | 23/12 2013 12:16
if you have more than one, attempt to pay extra on the one that incurs the highest interest rate, that's what's killing you and this your primary goal keep making the minimum on the others if that has been your practice when the worst is paid of, tear up the card and do not use it any longer when one is paid off, do the same with the others until they are paid off and also tear them up limit yourself to at least one credit card to be used as needed always keeping in mind that you want to pay it off each month

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