What to pay off?

[rbrt]

Looking for a little advice.

I just received a $3000 bonus and I have three credit cards

Department Store - $2000 owed at 21%
Bank Issued CC - $2600 owed at 17% - Account is Closed
Bank Issued CC - $2900 owed at 10% - Account is open w/ $600 avail.

I would like to pay one off in full, however, I am not sure which one benefits my credit most.
If I pay the Department store, it's the highest interest and leaves me $1000 in my pocket.
If I pay the closed CC, it helps my owed/available ratio. Since the card is closed, it's essentially dead money.
If I pay the open CC, I can pocket $600 and I have the available credit limit of $3500 in case of an emergency.
So you can see my dillema.
Any advice is appreciated. Thanks

[DebbieL]

I would pay off the card that's at 21%, then put the remainder on the next highest interest card at 17% (even though you've closed that account already). The interest fees will kill you. That's how I would tackle it anyways. Good luck!

[disneysteve]

I would pay off the card that's at 21%, then put the remainder on the next highest interest card at 17%

I agree. It is always financially best to retire debt from highest interest to lowest interest.

By the way, how will paying the open card let you pocket $600 if your bonus is $3,000 and your balance is $2,900?

[safari]

How can you have a closed account and still owe a balance on it? When you close an account, you have to pay the balance in full.

[rbrt]

disney, you're right, I did that math wrong. typing too quick.

safari, you can close a card with a balance on it. I just don't have access to the $ any longer as I pay it down.

[maat55]

As stated above, I would payoff the department debt then whats left to the closed account. In addition I would find every possible way to eliminate the remaining debt and only use the cards when you can PIF each month. Get a part time job and have a garage sell. Do it quickly and be relieved when it's over.

[jIM_Ohio]

I would pay off the card that's at 21%, then put the remainder on the next highest interest card at 17% (even though you've closed that account already). The interest fees will kill you. That's how I would tackle it anyways. Good luck!

I agree

make sure the payment budgeted for $2000 debt is transfered to the next highest interest rate (17%) when the first card is paid off.

[Hot dog]

I agree with everyone else but don't look at it as a card that will be at a 0 balance that you can use again later or as an emergency fund. Do not use these cards again unless you can pay it in full the next month.

[Tree0164]

I would pay off the 21% interest one and and then use the rest of as a baby emergency fund of $1,000.

Don't use the cards again!!!