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Credit card question

February 17th, 2025 at 03:47 am

So I am unhappy to say that we have 2 credit cards that we will be paying off this year, one we have had for years and the newest one since sept 2024....I want to know in which order you would pay them off once I give you the information as I am going to go hard at them starting march, also not saying what we owe right now as I have to do some numbers but they are roughly the same, these are the terms not that we take cash out (or rarely) just so you have the info...and no we won't apply for cars with 0% transfer fee as it is so hard and annoying over here and our fees and %'s are high (aussie)

CC1 $58 annual fee

13.74 % on purchases

21.99 on cash withdrawals

 

CC2 $8 card fee monthly (new)

$1.95 each time you make a payment they charge you (new)

27.99% interest

I was going to pay off CC 2 then CC1...but then I was thinking maybe I pay them off at the same time eg: if I had $1000 pay $500 on each....I'm just not sure, I know people say to stick with one and pay it off first then work on next one. Also thinking that we pay off CC1 as we will be keeping that card and then paying off CC2 and closing it...we don't need 2....we will eventually get rid of CC1 but want a lot more money in the bank before we do that

So any thoughts or advice on what you have done or are thinking would be great...Thanks

6 Responses to “Credit card question”

  1. comicguy Says:
    1739793424

    Not knowng any balances, I wouls pay off CC#2 8/month fee is more than the 58 annual fee of CC#1 and the fact that you have to pay a 1.95 fee just to make a payment is ridiculous. I would put all extra money on that one just not to deal with those terms!

  2. Lots of ideas Says:
    1739814445

    You left off the critical information of how much you owe on each card, what the credit limit is, and what the balance transfer rules are.
    I would look for a third card with a low introductory interest rate and no annual fee or payment fee.
    Then I would transfer the entire balance from credit card 2 and close it.
    Then figure out what your monthly payment is on credit card 1 and 3, and how much of either you can pay off before the low introductory rate rolls off card 3.
    I might transfer some of the balance 1 balance to balance 3 based on the numbers.
    If you can’t open a third card any you have space on card 1, I would balance transfer from card 2, then aggresively pay down card 2 but never pay more than once a month.
    And stop using all cards.

  3. mumof2 Says:
    1739867354

    Thankyou. we plan on closing CC 2 when it is paid off.

    The balances and amounts are on my side bar so didnt add them in

    Won't open another CC it is so ard to get them here and honestly not worth the hassle...should only take about 6 months to have both paid off completely

    Once we have more savings and more in our ice acct we will close the last CC...I hate having them

  4. patientsaver Says:
    1739898073

    I would pay off #2 card first since the monthly fees exceed the annual fee on the first card and the interest rate is obscene.

  5. LivingAlmostLarge Says:
    1740035634

    CC2 with that interest it needs to go

  6. mumof2 Says:
    1740036137

    Thankyou thats what I was thinking

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