I really like the idea of using the snowball method to knock down credit card debt but have been advised not to use it until I get my balances below the credit limit on cards. But, how do you do this when you have several cards (7-9)? With the exception of about three of the cards, the rest of them have relativly low balances (around $300-500). The others have balances slightly above $1000.
Do I just take one card at a time and pay enough on it to get it below the credit line and then move on to the next one? Or is there another way I can do this?
Over-the-limit credit cards
May 3rd, 2007 at 09:44 pm
May 3rd, 2007 at 09:46 pm 1178228781
May 3rd, 2007 at 11:44 pm 1178235868
May 4th, 2007 at 12:14 am 1178237690
Spare change, do the CC companies charge you something extra for being over the limit?
May 4th, 2007 at 02:19 am 1178245161
So even if you make the minimum, you really couldn't start the snowball until the accounts were under the limit because the min pays would be so large anyway. If you can't get every account under the limit at once, I'd focus on the smallest amount to get under the limit, then move to the next account and the next.
Dave Ramsey always says to get accounts current before starting the snowball and I would guess that he would say get them under the limit as well.
May 4th, 2007 at 11:35 am 1178278524
May 4th, 2007 at 02:17 pm 1178288240
May 4th, 2007 at 03:07 pm 1178291262
May 4th, 2007 at 04:26 pm 1178295970
May 4th, 2007 at 04:29 pm 1178296184