Your best overall outcome is going to come by tackling the high UTI accounts first. This will give your scores a nice boost by reducing your reported UTI, eliminate red flags from your profile for any maxed out (89%+) cards as well as alleviate higher payout of interest charges (if you're paying interest on them).
The plus side is once the larger debts are gone, the smaller ones become much more manageable and you can focus on AZE0, or AZE2.
Tip of the day: You should consider giving more details, list your accounts (acct 1, 2, etc), balances, limits, apr (if any)... and what kind of funds you have to throw at this.... you'll get more insightful responses.
Divide and conquer. Pay all of the smallest balances first. You'll get the most satisfaction from this.
@Brokenroad wrote:I have some extra cash to apply to my credit card debt. Is it best for me to pay off several cards with small balances or pay down a few cards that have large amounts that are close to full utilization?
1. Welcome to the forum.
2. Since you have accounts that are close to full utilization, your first objective should be to get those down to 78%.
3. Once you have nothing at 78% or higher, then start paying accounts down to 48%.
4. Once you have nothing at 48% or higher, then there are several strategies to apply. One is to pay the smallest balances off first. Another is to pay the highest interest rate balances off first. A third would be to first get everything down to 28%, then start using one of the other two methods I just mentioned.
@Gunnerboy wrote:Divide and conquer. Pay all of the smallest balances first. You'll get the most satisfaction from this.
Agreed depending on the individuals mindset this method might work better since you have instant gratification seeing more accounts at zero. Financially speaking it's better to hack away at the highest apr/balances first. Using @SouthJamaica method would benefit your credit and financials, Either way depends on what you want to accomplish.
@Iusedtolurk wrote:
@SouthJamaica wrote:
@Brokenroad wrote:I have some extra cash to apply to my credit card debt. Is it best for me to pay off several cards with small balances or pay down a few cards that have large amounts that are close to full utilization?
1. Welcome to the forum.
2. Since you have accounts that are close to full utilization, your first objective should be to get those down to 78%.
3. Once you have nothing at 78% or higher, then start paying accounts down to 48%.
4. Once you have nothing at 48% or higher, then there are several strategies to apply. One is to pay the smallest balances off first. Another is to pay the highest interest rate balances off first. A third would be to first get everything down to 28%, then start using one of the other two methods I just mentioned.
@SouthJamaica While reading your post I noticed Number 2 stated your first objective should be to get those down to 78%.
78% is new to me. I know if you over 90% (88?)then getting under that would have an effect but I thought the next would be getting under 50% then under 30% for a few more positive points and then of course under 10%.
I can't prove it but I think of 80% as a threshold, and I pick 78% to avoid rounding up.