Monday, October 5, 2009

Paying Down Credit Card Debt

Well it's a blog about a book club on personal finance, but it talks about the best ways to pay down credit card debt.

Three choices.

1.  Pay off the card with the highest interest rate - to pay the least in interest - before going to the next one.

2.  Pay off the card with the lowest balance, and then when it is paid, shift the payment money to the next card - pay off stuff faster.

3.  Pay off the card with the highest balance first - one maxed out card with a few others with small balances hurts your credit more.

Or combine strategies.

Read the pros and cons in the full article - click here.

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