How to Pay Off Multiple Credit Card Debts

Are you having trouble with multiple credit card debts and don’t know how which one to pay off first? Here are some tips on how to pay off multiple credit cards. Note that this blog and this article may contain affiliate links and adds. See our disclosure policy.

If you are dealing with multiple credit cards debts, you have two main options: the first option is to pay off the credit card with the smallest debt. The second option is to pay off the debt with the highest interest rate.

Option 1: Paying off the credit card with the smallest debt

It makes sense to pay off the credit card with the higher interest rate first. But if money is tight, the first option is to continue making the minimum payments on all credit cards and make more payments on the smallest debt. That way the smallest debt can be cleared first and then you tackle the next smallest debt and so on. This will reduce the chance of incurring any late fees and/or missed payments.

Option 2: Pay off the credit card with the highest interest rate first

The second option is to continue making the minimum payment on your cards and also pay off the credit card with the highest interest rate first by making extra payments on those credit cards. This will not only help you save money on interest it will also save the time you will have to pay them.

Whatever option you choose, however, stop adding to your debt. Do not use your cards until they are paid off. Once you pay off all of your credit card debts, see if you can reduce the amount of credit cards you have or reduce the limits you have on each card.

For more resources on debt and savings, see the following articles:

7 Simple Steps To Get Out and Stay Out of Debt

5 Tips to Help You Pay off High Interest Debt

How Making Extra Repayments Can Help You Pay Down Your Debt Faster

6 Reasons Why You Will Never Be Financially Independent

 


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