What’s the easiest way to pay off this debt?
I was reading an online article that was talking about how the credit card industry has jumped 315% since 1998. The article said (and I quote):
“Tackle your highest-interest credit card first. With rates averaging about 14.5 percent, you really want to knock out the high-interest debts quickly. Try shifting high-interest credit card debt onto cards that have lower interest rates.”
Here’s what I don’t understand - I have had the same credit card since about 2000. If I pay more than my minimum amount, it goes towards my next months payment. So, let’s say my minimum payment is $75. If I pay $200, I don’t owe again on that card for 4 months. I ended up transferring balances to an AMEX card and every month, no matter how much I paid, I owed around $125 as my minimum. I ended up transferring back and I don’t consider this card high interest by any means, but it’s certainly higher than an intro 0 percent. I have about $9000 in debt on my credit card, what’s the quickest way to pay it off?
No - the extra DOES pay off the balance. AND I don’t owe my next month’s minimum payment. So, let’s see - I’ve been paying about $200-$300 a month, ON TOP of my minimum monthly payment due (which is zero - $0). It does pay off my balance, and is NOT predatory. It’s very helpful, that’s why I’m asking: If I were to transfer my balance to another card, I would owe, every month. On my first card, I haven’t had a minimum monthly payment due to them in almost 4 years, because I always over pay, even when my bill comes each month, it says I owe $0, but I pay $200 towards my balance. And I have only transfered the balance once.
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Ooooh, this is scary. Paying $200 on a $75 minimum doens’t make your next month’s bill go away–the extra $125 just pays down your balance due.
Well, I’m a little confused. The majority of credit card companys will take you $200 payment and apply it to only the one month. The extra only goes to pay the balance, not next months minimum.
You can possibly negotiate with your cc company for a lower interest rate. I wouldn’t be transferring a bunch of times because this can hurt your credit score.
you need to get another card.-pay off your current card with it. What your present card is doing is preventing you from paying it off sooner by what most people would consider predatory and unfair lending tactics. If you keep on paying on this card in the manner that you have described, you may not ever get it paid out in your lifetime.