Is it better to make one big payment or multiple payments in regards to credit cards?

[Anonymous]

[jennifer_bloom]

I'd say one big payment is better - but pay as soon as you can.

[Paris13]

Consolidate if all Possible, One Bill if you Will. xxoo

[Middleman]

I know some folks here say to do it in one big payment - but that takes time to build up. If it takes time to build up, you'll be having to cover any interest it generates over that period you were saving up for the lump sum. Which means potentially you'll be paying MORE for your debt over the long run.

The ideal way to clear them is using the Debt Avalanche method - that is target the one with the highest interest rate first and pay minimum on the smaller ones and rollover the payment onto the next card/loan once that is cleared, as that will pay the least amount of interest combined. For multiple cards, the best way to tackle it would be to try and consolidate them onto a low interest or 0% interest card, and then pay off that card as much as you can per month (pay any extra over the minimum needed you can afford to put down).

If you have multiple cards with lots of low interest you could also pay them off using the Debt Snowball method by clearing the card with the lowest interest and amount first and rollover the payment to the next one once its cleared. While that will incur slightly more interest combined over time, people who aren't used to paying off debts find that it motivates them to continue because it usually clears the quickest.

[justawhiteman]

One big payment