People in Durham use their credit cards for a wide variety of reasons. Maybe you needed to make a big purchase like a new appliance or you needed to repair your car. Perhaps your income was lacking and you used it for everyday purchases. Credit card balances can grow very quickly and the thought of paying them off can be overwhelming. Here are to strategies to consider when deciding how to approach paying down your credit card debt.
One approach is known as the avalanche method. According to CNBC, this is where you pay off your debt with the highest interest rate first. This will save you money in the long run since you will pay less interest over time. Once that balance is paid off, you would move on to the next highest interest rate and continue on in that fashion until all your debt has been depleted.
However, while financially sound, that method can be tedious for many people and hard to stick out until the very end. That is why some experts instead recommend using something called the snowball method. This approach involves paying off your debts from smallest to biggest, rather than by interest rate.
The advantage of this method is that you will see results much quicker and from a psychological standpoint, this will motivate you to continue on. Whichever method you think makes the most sense, the key is sticking to it. You should also continue to pay your monthly minimums on all other accounts. This should not be considered legal advice and is provided only as general information on this topic.