Here are the two best methods for paying off your credit cards.
1. Highest interest rate first. Paying off the credit card with highest interest rate will save you money in the long run, especially if the highest interest rate credit card also happens to be the card with the highest balance. When the highest interest rate card also has the highest balance, it will take the longest to pay off. It's easy to lose motivation paying off your debt when it takes too long. That's why the "lowest balance first" method might be a better choice.
2. Lowest balance first. There are immediate tangible benefits to paying off the credit card with the lowest balance first. The first balances are easier and quicker to pay off. When you finally pay off a bill, the feeling of accomplishment is motivation to keep you going.
Pick the method you're going to use to pay off your credit cards. Then write your debts down in the order you're going to pay them - either from highest interest rate to lowest interest rate OR from lowest balance to highest balance. Write down the interest rate, balance, minimum payment. Then, allocate your entire net income (income - expenses) to paying off the credit card on the top of the list. You'll send the minimum payment to all your other credit cards.
Once you've completely repaid the first credit card, cross it off the list and focus on the next card on the list. As before, pay your entire net income to that card. Keep doing this process until all the cards have been paid off.
The most important part is that you need to budget your money carefully. You can opt for a Free budget software or a personal budget calculator.
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