Have $500 to pay off some debts, which ones first?

[jessicaerv]

Jessicaerv,
Just sent you a PM (personal message). IF you can't get pm's yet, please email me at

Sorry, Ilovediznee ~ I can't PM yet. Guess I'm too new. To answer your question, though ('cuz I can RECEIVE PMs, go figure), I didn't save the spreadsheet I put together. I can recreate it, but won't be able to do it for a few days - family from out of town visiting...

 

[ilovediznee]

That's ok, thanks for trying. I found something on yahoo that will calculate things for me. If you find NOTHING to do after family is gone, then please send it as I'd love to actually see a month by month countdown.

Again, my email is: dianedisney@hotmail.com

Thanks - Diane, Lexington, SC

 

[amylevan]

Pay the small ones first as you have suggested, OP. You will feel a sense of accomplishment. You will free up more OOP $ to put towards other things. Less checks to write each month. Dave Ramsey calls that debt snowball and it works. It's a mental game not a mathematical game.

That would explain why I don't agree with Dave Ramsey. Debt IS a mathematical game whether people choose to ignore that or not. No matter how you look at it, you are costing yourself money if you pay the 0% debts off before the 19% ones. And that's just poor money management. (Yes, even if its only the small amounts here...)

Of course, late fees is also a waste of money. So you really need to make a calendar and pay off those bills on time.

 

[mrsklamc]

That would explain why I don't agree with Dave Ramsey. Debt IS a mathematical game whether people choose to ignore that or not. .

OP isn't arguing that it will cost a bit more money. It will give her a sense of accomplishment, and that, in itself, has value.

She's clearing mental clutter. There will be fewer bills hanging over her head, and that makes her feel better. That has value, and good financial planning is about value, too, not just numbers.

 

[summerrluvv]

I'm a fan of the snowball method so I would pay off in order of smallest to greatest. I know it's not popular amongst everyone, but that's what I would do. I paid off 7 smaller credit cards vs. a higher interest rate one, and it feels great to not have to open the bills and log onto all those sites each month and pay a bill.

 

[ICF]

That would explain why I don't agree with Dave Ramsey. Debt IS a mathematical game whether people choose to ignore that or not. No matter how you look at it, you are costing yourself money if you pay the 0% debts off before the 19% ones. And that's just poor money management.

yep.....I guess it just makes too much sense to do what saves the most money!!?!?!

 

[meandmcgee]

Oh definitely the high interest ones