When you have a lot of different credit cards and you reach a point where you want to get control of your debt you may wonder how to decide which credit card to pay off first. The answer will be different for every person depending on their situation and circumstances but there are some general tips to consider.
First you need find the amount owing on each card. Make a list of your cards and then write down how much the balance owed is. Next we need to consider the interest rate and the minimum payment required each month. You must make the minimum payment on time every month to avoid getting additional credit card charges added to your bill.
Once you know which are the most expensive credit cards the answer to which one to pay off first will usually be fairly obvious. It is the most expensive one. The one that charges the highest interest will cost you more the longer you leave it with a balance attracting interest charges.
Some people like to pay off the smallest debts first as these are faster to get paid off. It does help to make you feel that you are achieving something positive so you might want to go this route but if you go purely on the numbers the high interest accounts are the ones where the savings can be made fasted.
Once you have paid off the highest interest card add the money you have been paying on that each month to the minimum you have been paying on the next most expensive card and get that one paid off next. In no time you will see yourself making good progress on getting rid of your credit card debt problems.
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