1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

I'm starting to Pay down DEBT, thinking of snowballing it

Discussion in 'BlackHat Lounge' started by JesterJoker, Mar 17, 2009.

  1. JesterJoker

    JesterJoker Regular Member

    Joined:
    Jan 13, 2008
    Messages:
    237
    Likes Received:
    28
    I'm actively paying down some debt in the next few months.

    I'm just looking for advice from other blackhat guys that have recently done the same.


    I am thinking of snowballing the debt, and paying down smallest to largest debts.

    Because at the point of paying off smallest, then I can put all the money I would regularly pay towards the bigger debts, and hit it even harder

    Plus actually paying it off 100% means less debt service in my name.


    And that means better scores and better rating for my credit.
     
  2. jmhmedia

    jmhmedia Junior Member

    Joined:
    May 20, 2007
    Messages:
    133
    Likes Received:
    32
    Location:
    C Town, CA
    The best thing you can do, in my opinion, is pay down debt with the highest interest rates first. These are the cards that are really costing you the most. If you want to pay off smaller cards first, pay off until they are under 50% of your available credit then start working on the next card- this is the best thing for your credit.
     
  3. JesterJoker

    JesterJoker Regular Member

    Joined:
    Jan 13, 2008
    Messages:
    237
    Likes Received:
    28
    I spoke with a good friend who does mortgage loans... this is a summary of what he said.

    Say you have a $4000 credit card, you might only be able to pay down a $2600 of it, leaving $1400 on it, vs a $1700 card, and a $900 card.

    Your paying off 2 cards COMPLETELY

    I can take out 2 cards $1700 and $900 shred the card and keep the account, and then you owe money to less companies and your credit goes up faster, with the money not being spent on those 2 cards use the payment for those towards the big card or towards the next smaller card.


    It doesnt make sense money wize but spending a little more on APR, but taking care of more cards faster is the way I am planning to do it.


    So I can say to myself I have allready taken out 3-4 cards only 1-2 to go. And keep going.. vs regaining debts.. Plus spending $4000 at once will leave me very hurting for money. So I might have the chance to regain debts.


    and at that point, I can use the $$ to pay down those big cards completely.