Ask Terry Questions Paying off credit card debt

Paying off credit card debt

By Terry Savage on July 09, 2015 | Credit/Debt

I have credit card debt and have just inherited money. I plan to use some of it to pay down my debt on each of my cards to 1/3 of my limits on each card. Should I pay this down in one payment or spread it out over a few months?
Is one way better than the other in the eyes of the credit card company? Is this a good idea in any case? I am interested in eventually getting rid of my debt but not my cards. Thanks

Terry Says:   If you are paying a high rate of interest, you definitely want to pay down the cards.  Otherwise you are continuing to dig a deep hole.  I don’t think it makes any difference whether you pay it down over a few months, or all at once.  And doing so immediately should remove the temptation to use the money for other things!



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