For many reasons, my wife and I have a high credit card debt (pushing $ 60K). However, we have come into $ 25,000 and want to use all of it toward our balance. We then expect to use another $ 5,000 of our income tax return toward the balance as well. I have 6 cards with balances and my wife has 5.
What’s the best approach to paying these off? Do we pay toward the higher balances first? Do we pay the ones with higher interest rates? Do we completely pay off as many of the smaller ones as we can? Do we do a balanced approach and pay some of each person’s or all toward one person? We hope to have the balance paid off in the next 2 years or so.
Our credit report is clean (other than the CC balance). Mortgage, no judgments, no late pays. Just high CC balances. Fico scores for both are about 700 and I suspect the $ 30,000 in payments are going to increase that significantly. We hope to sell our house, buy a new one this summer as well so the increased FICO scores will help.
Thanks and let me know if you need additional info and all advice welcome.