In this question, the OP had three cards, and the one with the largest balance had a promotion of 0% APR for a limited time.
Normally, the most efficient way to pay down that debt is to start with the highest APR card... but what if the highest APR is the post-promotion card?
Example (based on the other post):
- Card #1: $5600 balance, APR 7.24%
- Card #2: $3710 balance, APR 16.24%
- Card #3: $10,500 balance, 0% APR - was a balance transfer. In November, it will be 19.99%
In this scenario, should I pay down Card #2 first? Should I work on #3 so as to cut down on what the balance will be once the promo expires? Should I switch from #2 to #3 in November?
Assume that I have $500 disposable income each month to channel towards paying down principle, and that minimum payments are covered.