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Pay off credit cards w/low interest first/or towards mortg.

Posted on: 10th Sep, 2006 02:47 pm
If I have approx $30,000 in credit card debt..about 4 cards all w/interest rates less than 7%...does it make more sense to py them off first, or work on putting more principal toward mortgage to get house pd off sooner?
Hi Guest,

I think it is better to pay off the credit card debts first and then you can try to make extra payements towards the principal. Paying off your mortgage will be time consuming, so it is reasonable to repay the credit balances first.

Thanks,

Caron.
Posted on: 10th Sep, 2006 07:55 pm
For me, paying off high interest debt first is the right thing to do in your situation. whats say caron?
Posted on: 10th Sep, 2006 09:44 pm
Yes, gary, I think you are right. One should always look towards paying off high interest debts first. Otherwise, he will go on making large interest payments without having to save anything.

Generally, creditors offering credit cards charge high rates of interest compared top mortgage lenders. If that has happened to Raytoad, then it's better to get rid of the credit card balances first.

Thanks,

Caron.
Posted on: 11th Sep, 2006 12:06 am
I agree with paying debts off first.. my question is where did u get 7% credit cards.
Posted on: 11th Sep, 2006 01:32 am
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