Q: Credit card debt is pretty common these days. Do you have tips for paying off credit card debt?
A: If you have more than one credit card, it’s important to look at the interest rates for each card, along with the balance. You can either work on paying off those with higher balances first, or higher interest rates first. Either way, if you decide the order in which you’re going to pay them off, you will feel more in control.
Q: What are some other ways?
A: Whenever possible, make more than the minimum payment on your credit cards. This way, you are paying both principle and interest, as opposed to mostly interest. You will see your balances go down much faster. And don’t keep adding to your balances either.
Q: What about debt consolidation? Does that help?
A: Debt consolidation can help. You can take all of your credit card balances and combine them into one loan with one monthly payment. Debt consolidation loans also have fixed terms, so you will know when the balance of the loan will be paid in full. It’s important to talk to your lender when considering debt consolidation because there may be better options for you based on your situation.
- My Money Monday, June 18 - How to pay off your credit card debt
- My Money - Paying off your credit cards
- My Money Monday, March 5 - How to pay off debt
- My Money Monday, Jan. 22 - Paying off holiday debt
- My Money: Choosing the right credit card
- My Money - Getting your first credit card
- My Money Monday - Tackling student debt
- My Money - Good debt vs. bad debt
- My Money - Using your tax return to pay off debt
- My Money - What is Debt Consolidation