I received my overpayment refund from Credit Card #3. Now, the question is … who should get it?
Credit Card #2 appears to be the logical choice. There’s $22,041.93 sitting on that card at 16.49% (the highest rate of all of my cards). You may be wondering why I am even contemplating another choice.
Well, my overpayment refund combined with my tax refund will be enough to pay off Credit Card #4 completely. That balance is sitting there at 14.9%.
What I am thinking of doing is using my refunds and paying off Credit Card #4. As they have always done in the past, they have offered great balance transfer offers (usually around 2.9 – 4.9% for 6-12 months) when my balance is low. They “should” do that again if the card is paid off.
So, the two scenarios are
$8,000 at 4.9%
$14,000 at 16.9%.
or
$8,000 at 14.9%
$14,000 at 16.9%
But what if Credit Card #4 doesn’t offer a great balance transfer rate? Is it a good enough chance to take?
Any advice for the debt-fighting newbie?
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My Debt
- Original Debt: $38,495.86
- Added Debt: $1,781.50
- Total Debt: $40,277.36
- Paid: $36,084.36
- Remaining: $4,193.00
- Broken Down
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- Student Loan: $4,193.00
- Auto Loan 2: $0.00
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Posted: April 13th, 2006 at 4:24 pm
I am doing what Dave Ramsey suggests. List your debts from smallest to largest and pay in that order, no matter what the interest rates are. I got rid of 3 accts and almost done with #4, then I only have 2 more go go! Keep up the great work!
Posted: April 14th, 2006 at 7:00 pm
Thanks for the words of encouragement and the suggestion
Posted: July 20th, 2006 at 11:01 pm
[...] I am starting to wonder what the heck is wrong with me. I have had plenty of time to think about what to do with a refund from my credit card. I received some great comments when I posted my dilemma earlier on my blog, and I had the $5,600 all set and ready to go to Credit Card #4. The payment was scheduled for tomorrow. [...]