KK7
New Member

Better to Pay off Credit Card Now/Later

Hello community,

This is my situation. I currently have a CC debt ratio of about 75%. With tax returns coming in at just the right time, would it be better for me to...
A) pay off as much of my current CC balances with the tax refund and chip away at the residual
B) open a new CC and transfer all the current balances to the new CC - pay off as much as possible and eat the 3% transfer cost.
C) open a new CC, transfer the residual of whatever I a able to pay off with refund, and eat only 3% on the remainder balance.

Hope this makes sense, at the moment I am leaning towards option C considering it would 1. Open another line of credit. 2. Pay off as much debt as possible with refund. 3. Refinance the remainder at only a 3% cost versus attempting to close the current CC balances. Also, one balance is easier to pay off versus having 2 balances.

Again hope this makes sense - thanks in advance 🙂