Which of these two credit cards should I pay off first?
Card A: $1,200 total credit limit; $953 balance; 14.9% Interest until October, at which point it goes up unless I can renegotiate it lower, which I should be able to do. No bonus features of any type. Has an automated outgoing payment every month of $27.00
Card B: $2,900 total credit; $2,415 balance; 17.99% interest. Purchases get me bonus points, which makes it my “go-to” card for day to day spending right after my debit card. Higher balance makes it more useful for emergencies; however, those emergencies tend to make it harder to pay off entirely.
I have about $300 per month to put on credit card payments. I’ve been divvying it out at $150 each, but it seems like I should work on paying one off completely. I’d still probably drop $50 on the other card, so the one being paid off would get $250/mo.
So - which should it be? Lower interest rate, but quicker to wipe off entirely? Or higher interest rate, but slower payoff? I promise I will abide by The Will of the Dope!