My Debt Blog

As I have stated in the past, when I got our tax refund I would also pay off debt with part of it. I’ve been crunching the numbers and trying to determine if it would be better to payoff one larger balance or two cards with about the same balance as the one. In either case its money that we owe one way or another, but is paying off the smaller balance better than the larger one? Let me break this down a bit.

Option A
Pay off the one card which would be $2726.08 which has a 19.99% APR and averages a payment of $83 per month. I would then do a balance transfer of my other two cards to a 12 month 0% interest program that would have the remaining $2553.44. After adding the payments together it would be around $200 a month to clear the balance before the 0% is up.

Option B
The other option would be to pay off the $1215.62 and $1337.82 and those would be gone leaving just the other card at $2726.08. If I balance transfer this amount to my 12 month 0% interest card, it would be around $230 a month to clear the balance.

Am I just confusing myself here or should any of this even matter? In either case I want to make around a $200/month payment to rid the remaining debt at the 0% interest. Either case cuts us down to 4 cards total which is awesome considering how many we used to have. I also think that if our smaller cards have a fixed amount for a fixed period of time, we could boost our payments on the two bigger cards we have and pay those down faster too. Either case we want to get rid of the credit card debt in the most efficient way that we can.

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