Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!


Posted in Credit Cards
Profile Image

Question By

0 Contributions
0 People Helped
Save and pay a large chunk towards my credit card debt, or pay month to month as much as I can?
I have a credit card with a $5,500 balance and 19.25% APR. Minimum payment is $165 per month. Unfortunately, there's a monthly charge of about $100 for a pension program I'm enrolled in. Every month, I pay $200 towards the credit card debt, but with the $100 charge and about $100 in interest, it won't drop under $5,500. After paying off other debt, I can set aside and extra $300 per month now on top of the $200 of minimum payment.

I am wondering whether I should save a large chunk (say, $1000) before posting it against my card debt, or I should immediately start paying $500 instead of $200 every month. Which method will help me save more?

Thank you!

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.


Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.