I want to start paying off my credit cards now that I got a raise. What is a good strategy to do this?
Pay the highest rate credit cards first. By paying these first, you'll save the most in interest, which is more money you will have to apply to the others. Paying a lower rate card first only makes sense if you will be able to quickly pay it off and devote your energies to the larger balance cards. Be sure to make at least the minimum payments on all your credit cards. Making more than the minimum is a good idea in most cases, but not this one. Here you want to apply all your available money against the highest rate. Once you have these paid off, keep your spending habits in control and pay as you go. If you do make a charge for a large purchase again, that is when you want to always send more than the minimum amount due. Set a time table when you make the purchase, so you'll know how soon you will retire that debt.
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Pay the highest rate credit cards first. By paying these first, you'll save the most in interest, which is more money you will have to apply to the others. Paying a lower rate card first only makes sense if you will be able to quickly pay it off and devote your energies to the larger balance cards. Be sure to make at least the minimum payments on all your credit cards. Making more than the minimum is a good idea in most cases, but not this one. Here you want to apply all your available money against the highest rate. Once you have these paid off, keep your spending habits in control and pay as you go. If you do make a charge for a large purchase again, that is when you want to always send more than the minimum amount due. Set a time table when you make the purchase, so you'll know how soon you will retire that debt.
