What Credit Card Debt will you pay Off First?
You‘ve charged everything to your card, and now, it’s time to pay up. If your credit card bills are up to your eyeballs and all you do is keep on paying the minimums, it’s definitely time to get serious.
When you start to pay more than the minimum amount, your debts will start to disappear. For example, paying only $60 on a $3,000 balance would take you 8 years to finish with $2,780 in interest fees. By just adding $50 more every month, your debt will be settled in only 3 years and you will also be spared interest charges of $1,800.
Experts also say that the best way to be debt-free is to attack the card with the highest percentage rate. Then when it’s fully paid off, move to another card with the next highest rate.
Another alternative plan is to knock off the low-balance bills first, especially if this will give you the encouragement you need to stick to your plan. But definitely, it makes more financial sense to pay off the card with the highest rate first.
Ultimately, the key to your pay-down plan is just to stick with it whatever happens. Soon, you will find that the minimum payments are inching down and the bills are getting paid off.
So track your spending everyday to know where the money is going. Look at your finances closely and determine how much money you can really afford to pay your credit cards every month.