Which Credit Card Do I Pay Off First

Since your credit card likely charges higher interest rates than your car loan it s a good idea to pay off your credit card debt first.

Which credit card do i pay off first. That means it s best to prioritize paying off credit card debt to prevent interest from piling up. For each card note the date you opened the card along with its credit limit balance and the interest rate you are being charged. Credit cards generally have higher interest rates than most types of loans do. How do i decide which card to pay off first.

The alternative to a lump sum loan amount revolving credit accounts give you a line of credit that you can draw on pay off and use again. Let s tackle which cards to pay off first. Credit cards and lines of credit are considered revolving credit. You say in your letter that you have multiple credit cards.

Sit down first and make a list all of your credit cards. Lines of credit typically have a draw period followed by a repayment period similar to an installment loan. If you have credit card debt a credit card payoff calculator can tell you how long it will take you to pay off the debt or how much you need to fork over to pay down your debt faster these calculators let you input details about your debt like current balance annual interest rate and current monthly payment and spit out the recommended monthly payment you need to make to meet your goals. Once you pay off the credit card with the highest interest rate move on to the card with the next highest interest rate and so on until all the credit cards have been paid off.

If you have multiple credit card accounts and loans deciding which one to pay off first can be overwhelming. When it comes to paying off credit card debt there s no better way than the debt snowball method. There are a couple different ways to tackle credit card debt. Then pay off the credit card with the highest interest rate first by making high lump sum payments to that card each month.

List your credit card debt from smallest to largest don t worry about interest rates. I have 7 100 in credit card debt and almost all of my cards are maxed out. To decide whether to pay off credit card or loan debt first let your debts interest rates guide you. Debt is debt but which debt should be the first to.