I am a fairly new YNAB'er, and I have a good deal of credit card debt. I recently won a decent amount of money, and I want to put $5,000 of it into debt, and want to know best how to use it. The debt I have is:
CC #1 Balance= $6,000, Interest rate = 13.0%
CC #2 Balance = $3,000, Interest rate is split, with a large majority of it being a balance transfer from a 28% card:
Balance = 2,100, interest rate = 7.99%
Balance = 890, interest rate = 18.0%
As I understand it, if I throw X dollars at the card with the balance transfer, it will apply first to the lower interest rate money and not the higher interest rate, so if I throw, say, 2000 at it, the higher interest ~890$ will remain.
So, experts, if you were me, with about $5,000 in disposable income to spend any way you choose on debt and the debt above... how would you do it? Thanks in advance!!!