The least costly way to pay off your credit card debt is to pay off the card with the highest APR first, which is called the avalanche method. By allocating any extra funds to the card with the highest interest rate, while still paying the minimum for other debts, you will cut down on the amount of interest you pay.
Least Costly Way to Pay Off Your Credit Card Debt
Make a list of your credit card debts, including current balances, interest rates, and monthly minimum payments.
Sort them by interest rate, putting the highest rate first.
Determine how much money you can allocate to debt payments each month.
Pay the minimum monthly payment for the balances with the lowest interest rates, then put as much money as possible toward the balance with the highest interest rate.
Once you pay off the card with the highest interest rate, use the funds previously set aside for that card to focus on paying down your next most expensive balance
Repeat steps 1-5 until you pay off all of your credit card balances.
If you want to figure out how long it will take you to pay each balance, and how much interest you’ll pay over a specific amount of time, check out WalletHub’s credit card payoff calculator.
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