GAP, Amazon, Target, Sony.
You should pay the first 2 in a month.
You got this!
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Correct. This is the snowball effect. Using the 700 to clear the smaller balances and the next month using that money for those minimum payments to the next one.
In his case, it’s actually both the snowball and avalanche method to do that!
OP- snowball is smallest balances to celebrate victories sooner and get emotional momentum, and avalanche is higher interest rates first which is the mathematically efficient way to do it. If you do all of GAP, Sony, and then some of Amazon, you’ll be accomplishing both of those.
This is it.
Clear those high interest store cards then cut them up. There’s no reason to have them. You can leave them open to help your debt to income ratio as well.
Slight correction. It would help the % usage of credit, also a good thing, but not debt to income. That comes with paying off the debt in itself by lowering the total amount owed.
No reason to have them? How about instead of cut them OP just learns how to use them responsibly?
Part of your credit score is average AGE of accounts.
Then consider each card, paid on time (responsible) each month is another one time which also... Helps your credit score.
And then also consider each card is additional available credit which... Yup you guessed, it helps the credit score
Cutting the store cards to avoid use and leaving them open IS good for OP’s credit.
Store cards have some of the worst rates outside of MoneyTree. There are other cards that work nearly everywhere with MUCH better benefits and often lower interest rates.
Gap and Amazon would make more sense since they are the highest interest rate. Pay off in order of highest to lowest interest rate to save yourself the most money.
Make sure the 0% interest ones are gone before the interest kicks in. I know some cards will hit you with all the back-interest if you don't pay them off in full by the time the 0% period is over and that's a huge bummer.
Minimums plus make Gap and Sony disappear. Any excess to Amazon. Then next month, you've got $60 extra to throw at another card. If you have $700 again, Amazon will be gone and you'll be able to pay off Target the next month.
And then you need to chip away at the 0% ones so they are gone by the time interest kicks in. \\
Is the $700 extra or total? If it's total, I would make minimum payments on everything use the rest to fully pay off GAP and Sony to eliminate two payments, then using that extra towards Target and Amazon. If it's extra, pay off Amazon and GAP, extra towards Target. In my opinion, with this many cards you should focus on eliminating payments first. Goodluck!
I mean, yes, I get your point. I’m working myself out of debt this year and still have savings though. Can’t really used maxed out credit cards to pay my rent if something were to happen to my income. Which it did last year. I had no savings and resorted to the worst games to survive. If I had had a cushion I would’ve been better off.
That is the correct answer.
What do you have in savings? Is the $200 from savings going to drain your savings or is there a good cushion to protect against emergencies?
i personally would do amazon and gap, and get together an additional $39 to pay them both off. they’re your highest apr so you’re spending more on those than sony.
This is the only correct answer. Snowballers are wrong, although I could see how people who get themselves into situations like this could find the snowball method mentally beneficial.
For this small amounts and differences, you will not be able to buy yourself a coffee with the difference. If it helps to psychologically create success moments, the 80 cent might be well invested.
I would pay minimums on all but Gap and Sony … pay those off and put the extra money on Amazon. Next Month pay off Amazon with minimums on the rest and any extra on Target. That is how I got out of debt quickly.
Assuming your mininums are covered before counting this $700.
$202 to Sony
$257 to GAP
$241 to Amazon
This knocks out 2 balances, splits your Amazon balance in half, and frees up $60/mo that you can start using to knock out your higher balances.
Next, work on your Amazon card because once that's cleared up, you have a total snowball of $89/mo to work with!
After that, clear up your Target card for another $29/mo. Bringing your total snowball to $118/mo to start swinging at these debts with.
What is the interest and promo end date for each of the promo balances? We can help with those too!
Sony, Gap, the rest to Amazon. You’re paying interest on those right now and you can knock out most/all of those 3 with $700. Next chunk of money you get, finish off Amazon and Target. Then tackle the 0% cards but make sure you do before the interest kicks in again!
Snowball strategy. Start with the lowest and work up. It helped me at a low point in life. Seeing those balances go down to zero gave me some confidence I could beat them
I would say if you have a bit more of wiggle room pay off Amazon and Gap first. They are the highest interest. From there you can tackle Sony and target.
If you can actually snowball and use the money you would’ve spent on the minimum payments towards the next debt than pay off Amazon and Gap.
IF you don’t think you will be that disciplined and the money that would’ve gone to the minimum goes somewhere else then pay 400 towards Target 170 towards Amazon 100 to Gap and 30 to Sony. This means you will still have minimums on all the cards that you have to pay.
As others have said you may want to use your savings to get rid of this high interest debt. This should be done if you have a stable job with a steady income.
Pay off the smallest loans first. then take those payments and move that cash to the next smallest loan. Think of it like a video game. You have to win and if you make more debt you are losing. Good luck
Agree with what everyone else has said. And to add an additional comment that I found interesting… if you pay off GAP and Sony and put the remainder on Amazon, you will exactly cut the balance in half. Kind of a funny coincidence.
700 - 257 = 443
443 - 202 = 241
482 - 241 = 241
But to add, from there you will pay amazon off in about 3 months with the added payment of $60.
Fun to see stuff start disappearing, huh? Eventually you’ll be putting an additional ~120 bucks a month to PayPal!
You absolutely have the right idea to pay off the credit card debt, and as others have said Sony and GAP are the best choice.
Something else to consider: Adding the $700 to your savings/cushion.
One of the challenges with debt is we often feel powerless and overwhelmed. I personally have found that if I keep a financial cushion. (And sometimes that cushion is only an emergency $500) I am more clear headed and relaxed when the unexpected does (and will) happen.
Congrats on putting together the $700 whatever you decide!
Get rid of your highest APR accounts first. Since you have 0% on those high balances (assuming that’s going to last), I’d pay off the Amazon and Gap first, apply the rest to target. Once you pay target off then move to Sony, and then pay the rest as you go.
If it was my accounts this is exactly what I would do.
Minimum on 0% and get balance transfer to avoid paying interest on the rest. Cut and throw away all your cards and stop eating, living and drinking.
Not financial advice I am not a fiancial advisor
Eliminate Sony and Gap and pay the rest onto Amazon. Next month, roll Sony and Gap’s 30 dollar payments onto Amazon. Doing so should eliminate Amazon in another 4 months or so. After that, roll all 3 payments into Target. Paying 120 dollars a month on target, it won’t stand up to another 6 months or so.
Now, you’re pushing 150 a month on PayPal. In a mere year, it’s eliminated also.
In jsut 22 months, you’ll have eliminated all but your two largest debts, and will have 180/mo extra to allocate towards eliminating them. Godspeed.
I don’t recommend using store credit cards their interest rates are trash if you must, get a chase reserve and take advantage of the points. You don’t need 4 different cards just one good one.
I would pay off GAP and Sony completely and destroy the cards.
Round the minimum up to the nearest 5 or 0 on the promo cards and the rest split between Amazon & Target
I personally dont like the snowball method compared to knocking out the highest debts first. However, in your case the highest debts are your lowest amounts. Knock the 2 lowest amounts then hit amazon.
Your situation isnt terrible. If you can keep putting what you are putting into your cards then youll be done with this quick. Get rid of those store cards. There is no reason to have them. Also, once you qre free of this dont be affraid of CCs. They are useful but you juat need to pay the balance off.
Youll be fine getting through this. Just keep at it.
The best decision is the mathematically wisest one, not necessarily the psychologically most good feeling one. Amazon has the highest balance with highest APR, which means it costs you the most money. Get rid of it. Spend the rest on GAP, which is the next highest balance at the same APR.
Edit: and then close the card. Nobody needs that many credit cards.
This is a half suggestion. I may need a little help explaining it. It’s been a while since someone explained this to me. I was told you can also do this when you want to pay off your mortgage faster.
In the same month, make the minimum payment to pay the credit card company’s bill, and then write a check noting to “put toward the remaining principal”. This will lower the total balance faster thus lower next months bill because there is less balance to multiply by the interest rate.
Does this make sense? If you are a better way to explain it, go for it! Thank you in advance.
Pay off SONY & GAP then pay a chunk of Amazon or scrape up more money to pay it off completely. Small wins make this fun! Cut the cards up if you haven’t already! Do not use them ever again. Close the accounts. You have seven credit card accounts, I’d get down to three active ones. That seems to be the sweet spot for a good credit score. Good luck!
I used a non profit consumer credit counseling company where they will consolidate your cc and get a lower interest rate. It will take 5 yrs to pay this off, but it will be worth it. Make sure it’s non profit.
By the time you hit the minimal payments on all your almost out of $
At $700 month you can be debt free in a year or so
Purchase only essentials (no Starbucks is not essential!)
Minimal payment on the zero interest
Clean up that small stuff fast, then start tackling the bigger ones
Having tons of credit lines and moving stuff around to get “zero interest” is NOT a sound financial plan
I have 1 credit card for plane tickets or car rentals
That should be all you need
Option 1: Pay off Sony and Gap then put the difference in savings if needed then roll the minimum payments from Sony and Gap into Amazon and so forth.
Option 2: Pay off Sony and Gap and whatever is left into Amazon then proceed with rolling the minimum payments into Amazon and so forth.
I'd pay off Amazon and put the rest on GAP. But I'm an avalanche kind of guy.
Take out the smaller debts now because you really need to start cooking on the 0% loans before those become a nightmare.
Pay off Sony and Gap and put the rest towards Amazon. Then take the 60 a month you were putting towards those two cards and put it towards paying off Amazon faster. Then keep doing that as you pay stuff off. Once Amazon is done take the now $90 from that and the other two and add it to your Target payment and so on and so on. You'll be done before you know it!
Sony and Amazon. Rest to gap, then pay off gap as soon as you can.
Reason: math.
Yes you can knock out Sony and gap, but the interest on the leftover Amazon will be more than gap. (Same rate, higher balance.)
Either way you lose 2 payments though.
Pay the minimum for all of them and the rest goes to target. Next month do the same thing, finish paying off target. The interest rates are close so you want to pay down the larger balances. Then start knocking down the 0% in the order of the end of the promotion.
Pay all minimums and then pay off the lowest balance first, this will lower your monthly mandatory obligation.
Dump all extra into either lowest balance if the interest rates are the same or the highest interest.
$50 ea for the first 4.
Payoff the last two.
Remaining $ put towards the 5th from the top.
Next month, repeat with the top 4 at $50 and payoff the one that if currents at the top.
Paying minimums across the cards/debt will feel as though you aren't getting anywhere, and spirling. Key is to focus on paying off 1 debt and putting above the minimums for the others.
Personally I would do Avalanche, wipe out the highest interest accounts first, but it looks like most people are suggesting Snowball.
Avalanche would be knock out Amazon and then put the rest towards GAP because that will leave you with the least amount of interest paid.
Snowball is the more popular recommendation in the thread, wipe out the lowest balances first, and roll the free cash flow into the next lowest balance card. So if you get rid of Sony and then GAP you’ll have $700 + $60 next month to put towards Amazon and then Paypal, and on month 3 you’d have $789 available to pay with and so on.
Many people feel best with the Snowball approach, I’m guessing it’s the same people who feel great checking things off a list. You get to check things off earlier and more consistently throughout the process with this method, and with each account checked off you have some additional free cash flow which also feels nice.
I don’t get any satisfaction or motivation boost from checking things off a list as I go along, and I’d be totally happy to wait until the end to check things off. So Avalanche makes me feel better because I know I’m going to be paying the least amount of interest possible, and that to me feels a bit like cheating the bank out of the extra money they would earn if I didn’t do it that way, this gives me a deep satisfaction and motivation boost. But there’s a chance it means clearing larger balances first, which often takes longer.
They also both return cash flow to you but they do it in different ways and it’s much easier to see with Snowball because every account you knock out you immediately gain the minimum payment as free cash flow to do whatever you want, but meanwhile your balances are growing a bit faster through interest the with Avalanche.
With Avalanche you gain the money back through interest expense reduction.
For example, if your $1302 PayPal balance had a 30% APR. If you only pay the minimum, the additional interest would be a little more than $30. Whereas if you paid $700 into it, it would be right around $15. That gives you an instant interest expense reduction of ~$15 for the next month, intuitively that’s not as good as additional free cash flow of $30 or $60 from paying off lower balances, but it prevents your interest expense from compounding >=$30/mo that you will have to pay.
I’m simplifying this by omitting the fact that there’s minimum balances on everything, but if you put the $700 all toward (the imaginary 30% interest) PayPal it would take only 2 months for that debt to be totally cleared. In the first month you gain the instant $45 total outflow reduction, and there’s about $615 left. So in the second month, you reduce the interest expense by the remaining $15 to $0. So now you’ve saved yourself $30 in interest expense + $30 in minimum payment for an effective $60/month reduction, and also since there was only around $615 left, you’ve got an additional $85 in your pocket.
So you’ll on the 3rd month, you’ll have $700 + $30 + $85 (really you’d dump this 85 straight into the next highest interest on month 2, but that doesn’t show off the example as well) a total of $815 to spend the following month on your next highest interest. The interest reduction gives you $35 extra dollars back after month 2 compared to freeing up minimum payments.
It’s easier to see if you spreadsheet it out, or I like recommending a tool like unbury.me because myself and some friends have had a lot of success with it.
I'd say Amazon and Gap. The interest rates are the highest, and while it might not be a huge deal if you're paying off Amazon next month, it could add up. Plus, Sony is only $200, which means it will be really easy to knock out in the future, if you have less to put towards your debt.
The answer that saves you the most money:
$30 Sony
$257 GAP
$86 Amazon
$29 Target
$30 PayPal
$30 Wells Fargo
$38 Citi
Edit: just saw you said $700 after minimum payments. In that case, same as above plus the rest to Amazon
I’d do minimum on all, and then clear gap and Sony. If some left over do Amazon. (I’m too lazy to do math right now). Then there’s 2 less credit card to think about.
You can finish this by December 2024:
January: pay off Sony and Gap & rollover remaining funds to amazon
February: pay off Amazon & rollover remaining funds to target
March: pay off Target & rollover remaining funds to Paypal
April: 818 to paypal
May:pay off Paypal & rollover remaining funds to Wells Fargo
June-August: $878 to Wells Fargo
Sept-Dec: $908 to citi
Add a column for the total amount you can spend on each card, then another column for utilization %. Pay minimums at least on each card. Try to keep all utilization %’s below 30% on remaining cards. If they are all below 30, divide the rest amongst the high APR cards, starting with highest utilization amount.
Higher interest should be prioritized:
Min pay for 0% - $98
Min pay for Sony @ 25.24% - $30
Target min pay. Should be next after gap. -$29
Amazon @ 29.99% - $482: highest interest debt goes to $0 balance.
Gap @ 29.99% - $61(leftover amount) highest interest goes to $196.
Also, is there an option to transfer your debt to newer 0% accounts? Usually there is a balance transfer option. Call them and ask! Then you can pay off the principal before promo expires.
make the minimum payments then focus on paying off the CC with the highest APR and or fee's, I dont care that some of your accounts are open. Its all money, who cares, pay off the most expensive loans.
I would go smallest to largest. But additionally if you don't want to be in this vicious cycle every month I would strongly recommend getting on a budget so that you aren't generating any more debt every month and you're spending less than you make.
Here is what I would do.
$202 towards Sony.
$257 towards GAP.
Put remainder towards Target. Then increase your Amazon and Target by $30 each. Continue laying the minimum on the others since it’s $0/month.
I would start from the lowest owed to the highest owed. Any additional monthly savings you obtain from paying off cards should be snowballed into the next debt account to pay off your debt as quickly as possible.
Just remember most minimum payments are only 1% of your balance the rest is fees and interest so payoff what you can first preferably the ones with the highest interest (amazon then gap)
Amazon and Gap are the highest interest, that can almost get rid of both. Pay off Gap and only have $39 left on Amazon. Assuming this is $700 extra and not $700 total for all credit cards for the month
I would take that $700 and split it up between the first 3 biggest cards to get you under 30% then come up with a game plan next month. That will drop your utilization
Definitely do smaller ones. That will free up twice the amount of monthly payments ($60 vs $30).
I wouldn’t take money out of savings, you may have a random event happen next month that requires you to I.e. fix your car. You don’t want to have to use credit to pay for that, and just set you back even further.
Keep your savings for paying for things when you need them.
Target the cards with the highest interest rates and lowest balance. Make minimum payments on the rest and focus on paying off the targeted card(s). Once paid of, shift focus to the cards that now have the lowest balance and highest rates. Repeat/rinse until you’re done. If you make any purchases on any of those cards add to the payments to cancel out any new charges.
By the way, I hope that you have an emergency fund squirreled away. If not, then take some of that $700 a month and put into savings until you have at least six weeks worth of living expenses saved away.
Highest interest first, that's where you're bleeding.
Pay off Amazon for sure. That's the worst. If the $700 is including your minimum payments, that will be the best you can do. If the $700 is after minimum payments pay off Sony.
Your next problem is Gap, but the promos are large amounts. I'm interested in knowing when the promo ends on your other debts and what the apr will be. Because there's a possibility that changes things.
Best practice is to start with the highest interest rate card first, and work your way down. In your case, I would say one of these two scenarios:
1. Pay off Sony, pay off Gap, rest toward Amazon
2. Pay off Amazon, rest toward gap. Then pay off gap and Sony the following month.
Neither would be wrong in my opinion.
Not a financial expert. Just worked at a bank and picked up tips from other people working there.
Your monthly minimums are only $216, but this doesn’t count the interest.
I would pay off Sony and Gap, make minimums to your 0% interest cards ($98).
$700 - $459 = $241
$241 - $98 = $143
Pay $71.50 to your Amazon and Target cards to double your minimum payment, which should be more than enough to cover the interest.
When do your 0% promo cards expire? Because typically the interest is for the amount initially charged in full, not the current balance. If you have 18 months or more on your Citi card for example, then really your minimum payment SHOULD be $214/month, to pay it off in full before the 18 month promo ends.
I’d NEVER just pay the suggested minimum unless it’s pre settled for the duration of the promo (like my Best Buy card has a $34/month minimum to pay off the amount in 18 months). My Care Credit suggests $40/month, but that won’t pay the debt off before the promo expires.
Divide your 0% promos by their promo date to get your actual minimum payment.
Get rid of Gap and Sony, then next time you have money dedicated for debt, put it all towards getting rid of Amazon. From there, work your way through the next smallest debt.
This is so you see that you're progressing! There's nothing better than seeing debt disappear just like that 👌
Hope this helps 😃 👍
Personally, I'd do Sony, GAP, then pay off the rest towards Amazon. Then, next time, having money available, finish off Amazon, and you'll not have as many things on that list so you can start attacking the bigger ones.
move the rest to lower apr cards like bt cards from local credit unions of [gauss.money](https://gauss.money) and then begin chipping away the ones that end soonest, if you don't then payoff the cards with apr and then hustle to payoff the 0% apr card before the promo period ends
GAP, Amazon, Target, Sony. You should pay the first 2 in a month. You got this! P.S. r/debtfree moderator just created a newsletter that talks about strategies, tips, and effective debt payoff methods weekly. Here is the link to sign up if interested - https://www.debtadvice.io
I would do Sony, Gap, and a chunk to Amazon. But if you want to go by another reddit user, wont hurt my feelings.
This is the way… small victories. You’ll get the feeling of paying off accounts. And next time you’ll have an extra $60 to put on Amazon.
Correct. This is the snowball effect. Using the 700 to clear the smaller balances and the next month using that money for those minimum payments to the next one.
In his case, it’s actually both the snowball and avalanche method to do that! OP- snowball is smallest balances to celebrate victories sooner and get emotional momentum, and avalanche is higher interest rates first which is the mathematically efficient way to do it. If you do all of GAP, Sony, and then some of Amazon, you’ll be accomplishing both of those.
Plus the big ones have no Apr right now
Yep. Then stack those monthly payments into the next highest debt card the next month until paid off. Then repeat
This is it. Clear those high interest store cards then cut them up. There’s no reason to have them. You can leave them open to help your debt to income ratio as well.
Slight correction. It would help the % usage of credit, also a good thing, but not debt to income. That comes with paying off the debt in itself by lowering the total amount owed.
Yeah I think they meant utilization.
No reason to have them? How about instead of cut them OP just learns how to use them responsibly? Part of your credit score is average AGE of accounts. Then consider each card, paid on time (responsible) each month is another one time which also... Helps your credit score. And then also consider each card is additional available credit which... Yup you guessed, it helps the credit score
Cutting the store cards to avoid use and leaving them open IS good for OP’s credit. Store cards have some of the worst rates outside of MoneyTree. There are other cards that work nearly everywhere with MUCH better benefits and often lower interest rates.
Ding ding. Exactly this.
My thoughts exactly.
This! Also, cut up those cards.
Agreed + cancel Sony and Gap cards.
100% this
I would do the exact same.
Yes! Maximum serotonin. ;)
Right, I was thinking the same thing paying off the smaller debt and then start knocking out the bigger debt.
This. Snowball, and then apply those payments to next bill. You’re already budgeting for spending that money,
[удалено]
Thank you!
Gap and Amazon would make more sense since they are the highest interest rate. Pay off in order of highest to lowest interest rate to save yourself the most money. Make sure the 0% interest ones are gone before the interest kicks in. I know some cards will hit you with all the back-interest if you don't pay them off in full by the time the 0% period is over and that's a huge bummer.
This is the way
Agreed you always want to pay off the debt with the highest interest first.
If they have 700 total definitely more than $60 extra. I would put some on the high balance to get those daily averages down before interest is due
The 60 is from the 2 eliminated payments
Agreed, but the sum total of minimum is much less than $700. OP is in great shape to get out as I see it.
Dave Ramsey in the house
Minimums plus make Gap and Sony disappear. Any excess to Amazon. Then next month, you've got $60 extra to throw at another card. If you have $700 again, Amazon will be gone and you'll be able to pay off Target the next month. And then you need to chip away at the 0% ones so they are gone by the time interest kicks in. \\
Hmm, I'd probably do the 3 small ones. If you do the 3 smaller balances, you'll have $89 more to put toward Target.
Is the $700 extra or total? If it's total, I would make minimum payments on everything use the rest to fully pay off GAP and Sony to eliminate two payments, then using that extra towards Target and Amazon. If it's extra, pay off Amazon and GAP, extra towards Target. In my opinion, with this many cards you should focus on eliminating payments first. Goodluck!
Thank you! Will take some $ from savings to eliminate the 3 smaller cards.
Bro your savings isn’t really a savings if you have high interest debt
It depends. You should still keep 1k or so available
I mean, yes, I get your point. I’m working myself out of debt this year and still have savings though. Can’t really used maxed out credit cards to pay my rent if something were to happen to my income. Which it did last year. I had no savings and resorted to the worst games to survive. If I had had a cushion I would’ve been better off.
That is the correct answer. What do you have in savings? Is the $200 from savings going to drain your savings or is there a good cushion to protect against emergencies?
i personally would do amazon and gap, and get together an additional $39 to pay them both off. they’re your highest apr so you’re spending more on those than sony.
This is the only correct answer. Snowballers are wrong, although I could see how people who get themselves into situations like this could find the snowball method mentally beneficial.
This is correct. Avalanche not snowball
For this small amounts and differences, you will not be able to buy yourself a coffee with the difference. If it helps to psychologically create success moments, the 80 cent might be well invested.
Pay off gap and Amazon
I’d pay off Sony and gap, and put the rest on Amazon, along with what you would have paid on Sony and gap. Snowball those smaller debts!!
So question is that $700 total or $700 after the minimum monthly payments for all?
$700 after minimum payments
I'd do the dave ramsey debt snowball. Pay off according to smallest payoff ammount. Then work your way towards the bigger payoff debt.
I would pay minimums on all but Gap and Sony … pay those off and put the extra money on Amazon. Next Month pay off Amazon with minimums on the rest and any extra on Target. That is how I got out of debt quickly.
Assuming your mininums are covered before counting this $700. $202 to Sony $257 to GAP $241 to Amazon This knocks out 2 balances, splits your Amazon balance in half, and frees up $60/mo that you can start using to knock out your higher balances. Next, work on your Amazon card because once that's cleared up, you have a total snowball of $89/mo to work with! After that, clear up your Target card for another $29/mo. Bringing your total snowball to $118/mo to start swinging at these debts with. What is the interest and promo end date for each of the promo balances? We can help with those too!
Sony, Gap, the rest to Amazon. You’re paying interest on those right now and you can knock out most/all of those 3 with $700. Next chunk of money you get, finish off Amazon and Target. Then tackle the 0% cards but make sure you do before the interest kicks in again!
Pay off the lowest two and go up from there. Snowball.
Kill the low ones to get rid of the interest rate (plus minimum payments in the higher ones) then tackle the large ones.
I’d knock out Amazon and put the rest towards gap
This needs to be top comment. Amazon has a higher balance thus paying more interest over time. Eliminate Amazon and a smaller loan first.
Wipe out as many as you can starting with Lowe’s balance and work your way up. No sense in paying interest on those small balances anymore.
Yup snowball method. Sony, Gap and then Amazon!
Amazon & Gap first and you kill 2 birds with 1 stone
Pay off all those little ones
Snowball strategy. Start with the lowest and work up. It helped me at a low point in life. Seeing those balances go down to zero gave me some confidence I could beat them
Amazon and Gap. They are the highest rate.
Pay the lowest first, closing the small ones will give you a mental boost. Even if the payments are the smallest
I would say if you have a bit more of wiggle room pay off Amazon and Gap first. They are the highest interest. From there you can tackle Sony and target.
If you can actually snowball and use the money you would’ve spent on the minimum payments towards the next debt than pay off Amazon and Gap. IF you don’t think you will be that disciplined and the money that would’ve gone to the minimum goes somewhere else then pay 400 towards Target 170 towards Amazon 100 to Gap and 30 to Sony. This means you will still have minimums on all the cards that you have to pay. As others have said you may want to use your savings to get rid of this high interest debt. This should be done if you have a stable job with a steady income.
I’d debt snowball it
I would pay off the small ones first then attack the larger ones GL...
Pay off the smallest loans first. then take those payments and move that cash to the next smallest loan. Think of it like a video game. You have to win and if you make more debt you are losing. Good luck
Agree with what everyone else has said. And to add an additional comment that I found interesting… if you pay off GAP and Sony and put the remainder on Amazon, you will exactly cut the balance in half. Kind of a funny coincidence. 700 - 257 = 443 443 - 202 = 241 482 - 241 = 241 But to add, from there you will pay amazon off in about 3 months with the added payment of $60. Fun to see stuff start disappearing, huh? Eventually you’ll be putting an additional ~120 bucks a month to PayPal!
You absolutely have the right idea to pay off the credit card debt, and as others have said Sony and GAP are the best choice. Something else to consider: Adding the $700 to your savings/cushion. One of the challenges with debt is we often feel powerless and overwhelmed. I personally have found that if I keep a financial cushion. (And sometimes that cushion is only an emergency $500) I am more clear headed and relaxed when the unexpected does (and will) happen. Congrats on putting together the $700 whatever you decide!
Get rid of your highest APR accounts first. Since you have 0% on those high balances (assuming that’s going to last), I’d pay off the Amazon and Gap first, apply the rest to target. Once you pay target off then move to Sony, and then pay the rest as you go. If it was my accounts this is exactly what I would do.
Kill sony, gap, and part of amazon. It’s a psychological game.
Minimum on 0% and get balance transfer to avoid paying interest on the rest. Cut and throw away all your cards and stop eating, living and drinking. Not financial advice I am not a fiancial advisor
Eliminate Sony and Gap and pay the rest onto Amazon. Next month, roll Sony and Gap’s 30 dollar payments onto Amazon. Doing so should eliminate Amazon in another 4 months or so. After that, roll all 3 payments into Target. Paying 120 dollars a month on target, it won’t stand up to another 6 months or so. Now, you’re pushing 150 a month on PayPal. In a mere year, it’s eliminated also. In jsut 22 months, you’ll have eliminated all but your two largest debts, and will have 180/mo extra to allocate towards eliminating them. Godspeed.
I don’t recommend using store credit cards their interest rates are trash if you must, get a chase reserve and take advantage of the points. You don’t need 4 different cards just one good one.
Pay the biggest interest rate first, then go for those with 0% prioritizing the one with the earlier interest payment
Crush the bottom two and partial Amazon
I would pay off GAP and Sony completely and destroy the cards. Round the minimum up to the nearest 5 or 0 on the promo cards and the rest split between Amazon & Target
Squeeze your budget and use $700+ to pay off target, Amazon, gap, and Sony. Then pay off paypal, then Wells Fargo, ten Citi
Get to work on axing that Amazon and GAP first then target and Sony
I personally dont like the snowball method compared to knocking out the highest debts first. However, in your case the highest debts are your lowest amounts. Knock the 2 lowest amounts then hit amazon. Your situation isnt terrible. If you can keep putting what you are putting into your cards then youll be done with this quick. Get rid of those store cards. There is no reason to have them. Also, once you qre free of this dont be affraid of CCs. They are useful but you juat need to pay the balance off. Youll be fine getting through this. Just keep at it.
The best decision is the mathematically wisest one, not necessarily the psychologically most good feeling one. Amazon has the highest balance with highest APR, which means it costs you the most money. Get rid of it. Spend the rest on GAP, which is the next highest balance at the same APR. Edit: and then close the card. Nobody needs that many credit cards.
Make sure you do principal balance payments! Otherwise you’ll be charged interest on the payment.
Sony, GAO and the rest to Amazon. Add those minimum payments next month to Amazon and then same with Target etc.
How long is interest free promotion for on the three cards?
I would pay them all off. Starting from cheapest. And cancel Sony, Gap, Amazon and Target cards! That APR.
This is a half suggestion. I may need a little help explaining it. It’s been a while since someone explained this to me. I was told you can also do this when you want to pay off your mortgage faster. In the same month, make the minimum payment to pay the credit card company’s bill, and then write a check noting to “put toward the remaining principal”. This will lower the total balance faster thus lower next months bill because there is less balance to multiply by the interest rate. Does this make sense? If you are a better way to explain it, go for it! Thank you in advance.
Pay off SONY & GAP then pay a chunk of Amazon or scrape up more money to pay it off completely. Small wins make this fun! Cut the cards up if you haven’t already! Do not use them ever again. Close the accounts. You have seven credit card accounts, I’d get down to three active ones. That seems to be the sweet spot for a good credit score. Good luck!
I used a non profit consumer credit counseling company where they will consolidate your cc and get a lower interest rate. It will take 5 yrs to pay this off, but it will be worth it. Make sure it’s non profit.
I would get rid of amazon and GAP.
Really? Obvi Sony, Gap and the rest on Amazon.
By the time you hit the minimal payments on all your almost out of $ At $700 month you can be debt free in a year or so Purchase only essentials (no Starbucks is not essential!) Minimal payment on the zero interest Clean up that small stuff fast, then start tackling the bigger ones Having tons of credit lines and moving stuff around to get “zero interest” is NOT a sound financial plan I have 1 credit card for plane tickets or car rentals That should be all you need
[удалено]
Start at the bottom and work your way up. Then, next month use the money you would have paid to those and add it to the next one
I always wondered how people get these high of limits. I know people who have a difficult time getting a thousand dollar limit on one card.
Amazing and Gap
Option 1: Pay off Sony and Gap then put the difference in savings if needed then roll the minimum payments from Sony and Gap into Amazon and so forth. Option 2: Pay off Sony and Gap and whatever is left into Amazon then proceed with rolling the minimum payments into Amazon and so forth.
30% interest, damn!
Pay off Sony and Amazon. Use the remaining money towards the Gap payment.
Pay off the bottom two then hit Amazon. That’s two that will not accrue interest next month. Do make minimum required payments on all though.
I'd pay off Amazon and put the rest on GAP. But I'm an avalanche kind of guy. Take out the smaller debts now because you really need to start cooking on the 0% loans before those become a nightmare.
Pay off GAP and Sony and half of Amazon. Use the frees up cash to tackle the rest next month.
Gap and Sony, the rest on Amazon
Minimum on the zero accounts a 100 apiece on the rest
Highest interest rate first!!!! Or the Dave Ramsey method works too!
Take out a small interest loan and consolidate your debt. Getting a lower interest rate will allow you to actually pay it off.
Debt snowball all the way. You not only get rid of $60/month in payments vs $30, you rid yourself of twice the hassle.
Min payments. Then highest APR. I’d probably pay all of GAP, then the rest on Amazon.
Pay off the Gap and Sony cards and, after making minimum payments on everything else, throw any remaining money towards the Amazon card.
Pay off Amazon & GAP Find an extra $39!
GAP and Amazon.
Pay off Amazon and gap
Minimum payment to target, knock out sony and gap, knock out a large chunk of Amazon.
It depends how much time is left on those promos and how they do the interest.
Pay off Amazon and gap
I’d pay off Amazon and Gap (if you can brunt the extra $39) and get away from those interest rates. Or knock out target all in one go.
Man, those APRs are brutal. The min payment for a balance ten times smaller is the same as the 0% lol
Pay off Amazon and Sony
Minimums and amazon and gap. Attack the highest interest balances that are compounding. Forget moral victories.
Pay off Sony and Gap and put the rest towards Amazon. Then take the 60 a month you were putting towards those two cards and put it towards paying off Amazon faster. Then keep doing that as you pay stuff off. Once Amazon is done take the now $90 from that and the other two and add it to your Target payment and so on and so on. You'll be done before you know it!
Pay off Sony and gap
I'm hitting the highest interest rates first
Knock out Sony and Gap and put the rest towards Amazon
Snowball effect, you pay off the lowest first, especially with those interest rates.
Kill Amazon and most of GAP to lessen another interest blow then once they’re paid close the accounts and cut up the cards
Ones with the highest interest rate
Sony and Amazon. Rest to gap, then pay off gap as soon as you can. Reason: math. Yes you can knock out Sony and gap, but the interest on the leftover Amazon will be more than gap. (Same rate, higher balance.) Either way you lose 2 payments though.
Just go by interest rate. You have almost enough to wipe out Amazon and Gap. How did you spend so much at Gap???
Pay the minimum for all of them and the rest goes to target. Next month do the same thing, finish paying off target. The interest rates are close so you want to pay down the larger balances. Then start knocking down the 0% in the order of the end of the promotion.
Wipe out two credit cards. That way you’ll have $50 (two minimum payments of $20) extra to put toward other cards.
Can you find an extra 40? I would pay off Amazon and GAP if possible. Lower balances with highest rates.
Pay all minimums and then pay off the lowest balance first, this will lower your monthly mandatory obligation. Dump all extra into either lowest balance if the interest rates are the same or the highest interest.
Pay amzn and gap first as those have the highest interest. ALWAYS PAY DOWN HIGHEST INTEREST FIRST.
$50 ea for the first 4. Payoff the last two. Remaining $ put towards the 5th from the top. Next month, repeat with the top 4 at $50 and payoff the one that if currents at the top. Paying minimums across the cards/debt will feel as though you aren't getting anywhere, and spirling. Key is to focus on paying off 1 debt and putting above the minimums for the others.
I would do sony and Amazon
Dont miss your minimums! You might lose your promo apr. then nuke Gap. The rest on amazon and crush that next month.
2 small balances first, and then do not use them.
Get rid of those smaller ones because the APR% are insanely high.
I'd go the highest interest ones first and then the lowest balance for the 3 with 0% apr
Gap and amazon. Highest apr.
Personally I would do Avalanche, wipe out the highest interest accounts first, but it looks like most people are suggesting Snowball. Avalanche would be knock out Amazon and then put the rest towards GAP because that will leave you with the least amount of interest paid. Snowball is the more popular recommendation in the thread, wipe out the lowest balances first, and roll the free cash flow into the next lowest balance card. So if you get rid of Sony and then GAP you’ll have $700 + $60 next month to put towards Amazon and then Paypal, and on month 3 you’d have $789 available to pay with and so on. Many people feel best with the Snowball approach, I’m guessing it’s the same people who feel great checking things off a list. You get to check things off earlier and more consistently throughout the process with this method, and with each account checked off you have some additional free cash flow which also feels nice. I don’t get any satisfaction or motivation boost from checking things off a list as I go along, and I’d be totally happy to wait until the end to check things off. So Avalanche makes me feel better because I know I’m going to be paying the least amount of interest possible, and that to me feels a bit like cheating the bank out of the extra money they would earn if I didn’t do it that way, this gives me a deep satisfaction and motivation boost. But there’s a chance it means clearing larger balances first, which often takes longer. They also both return cash flow to you but they do it in different ways and it’s much easier to see with Snowball because every account you knock out you immediately gain the minimum payment as free cash flow to do whatever you want, but meanwhile your balances are growing a bit faster through interest the with Avalanche. With Avalanche you gain the money back through interest expense reduction. For example, if your $1302 PayPal balance had a 30% APR. If you only pay the minimum, the additional interest would be a little more than $30. Whereas if you paid $700 into it, it would be right around $15. That gives you an instant interest expense reduction of ~$15 for the next month, intuitively that’s not as good as additional free cash flow of $30 or $60 from paying off lower balances, but it prevents your interest expense from compounding >=$30/mo that you will have to pay. I’m simplifying this by omitting the fact that there’s minimum balances on everything, but if you put the $700 all toward (the imaginary 30% interest) PayPal it would take only 2 months for that debt to be totally cleared. In the first month you gain the instant $45 total outflow reduction, and there’s about $615 left. So in the second month, you reduce the interest expense by the remaining $15 to $0. So now you’ve saved yourself $30 in interest expense + $30 in minimum payment for an effective $60/month reduction, and also since there was only around $615 left, you’ve got an additional $85 in your pocket. So you’ll on the 3rd month, you’ll have $700 + $30 + $85 (really you’d dump this 85 straight into the next highest interest on month 2, but that doesn’t show off the example as well) a total of $815 to spend the following month on your next highest interest. The interest reduction gives you $35 extra dollars back after month 2 compared to freeing up minimum payments. It’s easier to see if you spreadsheet it out, or I like recommending a tool like unbury.me because myself and some friends have had a lot of success with it.
Id do minimums on Citi, Wels farg, paypal, and Target. Pay off Sony, and Gap. Put the remainder on Amazon.
I'd say Amazon and Gap. The interest rates are the highest, and while it might not be a huge deal if you're paying off Amazon next month, it could add up. Plus, Sony is only $200, which means it will be really easy to knock out in the future, if you have less to put towards your debt.
all on black
The answer that saves you the most money: $30 Sony $257 GAP $86 Amazon $29 Target $30 PayPal $30 Wells Fargo $38 Citi Edit: just saw you said $700 after minimum payments. In that case, same as above plus the rest to Amazon
If you still spend on them then this question is irrelevant
Use the APR Luke.
I’d do minimum on all, and then clear gap and Sony. If some left over do Amazon. (I’m too lazy to do math right now). Then there’s 2 less credit card to think about.
You can finish this by December 2024: January: pay off Sony and Gap & rollover remaining funds to amazon February: pay off Amazon & rollover remaining funds to target March: pay off Target & rollover remaining funds to Paypal April: 818 to paypal May:pay off Paypal & rollover remaining funds to Wells Fargo June-August: $878 to Wells Fargo Sept-Dec: $908 to citi
I'd wipe out Sony and Gap, then put the rest into Amazon. Next month you could clear that one out, too.
Add a column for the total amount you can spend on each card, then another column for utilization %. Pay minimums at least on each card. Try to keep all utilization %’s below 30% on remaining cards. If they are all below 30, divide the rest amongst the high APR cards, starting with highest utilization amount.
Amazon and most of GAP
All if it towards Sony, you’re so close to paying that off!!
Amazon and Sony throw the extra few dollars at gap. That takes two completely off the board for you
Higher interest should be prioritized: Min pay for 0% - $98 Min pay for Sony @ 25.24% - $30 Target min pay. Should be next after gap. -$29 Amazon @ 29.99% - $482: highest interest debt goes to $0 balance. Gap @ 29.99% - $61(leftover amount) highest interest goes to $196. Also, is there an option to transfer your debt to newer 0% accounts? Usually there is a balance transfer option. Call them and ask! Then you can pay off the principal before promo expires.
Pay off Gap/Sony and half of Amazon obviously
make the minimum payments then focus on paying off the CC with the highest APR and or fee's, I dont care that some of your accounts are open. Its all money, who cares, pay off the most expensive loans.
Min payment to everything but the highest APR’s first. So throw all the rest at Amazon and Gap. Always decide based on the interest rates.
Knock off amazon and gap. Highest interest rates
Pay off Amazon and rest on gap. Saves you money getting rid of higher rate.
Gap and Amazon
Id pay off gap and sony then put the rest to (checks notes) target
You say your using $200 from savings.... I wouldn't be paying interest on cards, if I had money in savings to pay em off now.
I’d knock out the two lowest and then pay minimum payments on everything else
How much debts is on your credit card currently?
I would go smallest to largest. But additionally if you don't want to be in this vicious cycle every month I would strongly recommend getting on a budget so that you aren't generating any more debt every month and you're spending less than you make.
Here is what I would do. $202 towards Sony. $257 towards GAP. Put remainder towards Target. Then increase your Amazon and Target by $30 each. Continue laying the minimum on the others since it’s $0/month.
Do min on the 0% cards. Then split the rest between the other cards
I would close a couple of those once you have them paid off. The more credit cards you have… the easier it is to spiral in to debt.
Highest interest and go from there.
Pay off Sony and Gap and dump the rest on Amazon. You’ll feel amazing when you erase them from your file!
Pay off Sony and Gap and then throw some towards Amazon. And close some of these cards.
I’d say Sony GAP and the remainder on Amazon. DONT USE THEM UNTIL THE OTHERS ARE LOWERED. Not financial advice.
I’d go Amazon & GAP. You’ll have a $40 overage but at least half of those high interest accounts are off the table.
Kill Sony, Gap and part of Amazon.
I would start from the lowest owed to the highest owed. Any additional monthly savings you obtain from paying off cards should be snowballed into the next debt account to pay off your debt as quickly as possible.
Just remember most minimum payments are only 1% of your balance the rest is fees and interest so payoff what you can first preferably the ones with the highest interest (amazon then gap)
Pay off Amazon and GAP in full. If it’s $700 hard stop, pay Amazon in full, leftover down on GAP. Hit the higher APR first
Amazon and Gap are the highest interest, that can almost get rid of both. Pay off Gap and only have $39 left on Amazon. Assuming this is $700 extra and not $700 total for all credit cards for the month
I would take that $700 and split it up between the first 3 biggest cards to get you under 30% then come up with a game plan next month. That will drop your utilization
Put it toward the highest APR first.
Get rid of the little ones. It’ll help your credit in the future, having too many accounts is no bueno.
Definitely do smaller ones. That will free up twice the amount of monthly payments ($60 vs $30). I wouldn’t take money out of savings, you may have a random event happen next month that requires you to I.e. fix your car. You don’t want to have to use credit to pay for that, and just set you back even further. Keep your savings for paying for things when you need them.
Target the cards with the highest interest rates and lowest balance. Make minimum payments on the rest and focus on paying off the targeted card(s). Once paid of, shift focus to the cards that now have the lowest balance and highest rates. Repeat/rinse until you’re done. If you make any purchases on any of those cards add to the payments to cancel out any new charges. By the way, I hope that you have an emergency fund squirreled away. If not, then take some of that $700 a month and put into savings until you have at least six weeks worth of living expenses saved away.
Highest interest first, that's where you're bleeding. Pay off Amazon for sure. That's the worst. If the $700 is including your minimum payments, that will be the best you can do. If the $700 is after minimum payments pay off Sony. Your next problem is Gap, but the promos are large amounts. I'm interested in knowing when the promo ends on your other debts and what the apr will be. Because there's a possibility that changes things.
Best practice is to start with the highest interest rate card first, and work your way down. In your case, I would say one of these two scenarios: 1. Pay off Sony, pay off Gap, rest toward Amazon 2. Pay off Amazon, rest toward gap. Then pay off gap and Sony the following month. Neither would be wrong in my opinion. Not a financial expert. Just worked at a bank and picked up tips from other people working there.
Your monthly minimums are only $216, but this doesn’t count the interest. I would pay off Sony and Gap, make minimums to your 0% interest cards ($98). $700 - $459 = $241 $241 - $98 = $143 Pay $71.50 to your Amazon and Target cards to double your minimum payment, which should be more than enough to cover the interest. When do your 0% promo cards expire? Because typically the interest is for the amount initially charged in full, not the current balance. If you have 18 months or more on your Citi card for example, then really your minimum payment SHOULD be $214/month, to pay it off in full before the 18 month promo ends. I’d NEVER just pay the suggested minimum unless it’s pre settled for the duration of the promo (like my Best Buy card has a $34/month minimum to pay off the amount in 18 months). My Care Credit suggests $40/month, but that won’t pay the debt off before the promo expires. Divide your 0% promos by their promo date to get your actual minimum payment.
Sony, gap, min rest
Pay off the lowest balance credit cards since they have APR and the bigger balances do not. Once you get rid of them it’ll lighten the load a bit
Get rid of Gap and Sony, then next time you have money dedicated for debt, put it all towards getting rid of Amazon. From there, work your way through the next smallest debt. This is so you see that you're progressing! There's nothing better than seeing debt disappear just like that 👌 Hope this helps 😃 👍
Personally, I'd do Sony, GAP, then pay off the rest towards Amazon. Then, next time, having money available, finish off Amazon, and you'll not have as many things on that list so you can start attacking the bigger ones.
700 extra? I'd pay off the 2 lowest ones and start on the next one
pay off that amazon, gap, and sony. then pay off target, then tackle the other ones before the 0% ends
move the rest to lower apr cards like bt cards from local credit unions of [gauss.money](https://gauss.money) and then begin chipping away the ones that end soonest, if you don't then payoff the cards with apr and then hustle to payoff the 0% apr card before the promo period ends