Which Credit Card Should You Pay Off First?


One of the most commonly asked questions people have regarding their debt is which credit card to pay off first. It’s not a bad question, either. It’s merely a question that people have because they honestly do not know which card is the best to pay off first. Some people suggest paying off a certain card first, using a specific method and going from there. Others swear by other methods. We think that there are plenty of great debt payoff methods out there, but we also believe that there is only one that will work best for you and your financial situation; and it might not be the same method that works best for others. The key is to know yourself and what works for you.

One of the best ways to choose which card to pay off first is to transfer balances to a no or low-interest card for the time being. The best balances to transfer are the ones that have the highest interest rates and then focus on those. This is a method that works well for many people; but it is not a method that works well for all people.

Another way to make a decision about which credit card to pay off is to ask yourself a question: Do you work well when you feel a sense of accomplishment and meet a goal? For example, are you more likely to pay off a credit card that has a very small balance first and then allow that feeling of accomplishment motivate you to do it again with the next lowest balance? If you are the type of personality that works well when things are happening, this is probably the best way to choose which card to pay off first.

Some will disagree with me and say that the most expensive card is the one you should pay off first. That may be, but if you can’t muster up the motivation to stick with paying off your cards unless you see progress by meeting small goals along the way, pick the method of choosing a card to pay off first that works well for you.

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