In order to make progress on paying off a credit card balance with a high-interest rate, you may want to look into strategies to bring down both your interest rate & balance.
1. Pay off the highest-interest debt first Best for those who want to save on interest charges Known as the debt avalanche method, this strategy involves making the minimum monthly payments on all your credit cards, except for the one with the highest interest rate. Focus on making as larg...
Whenever you get a loan, you’ll usually have to pay interest. Even though credit cards are a type of loan, you can avoid interest fees completely with most cards. Interest is a fee you pay for borrowing money from a lender. Most of the time, the interest you pay is a percentage of...
LightStreamis another attractive option if you're trying to pay off high-interest credit cards thanks to its low APRs. You will need a FICO credit score of at least 670, but LightStream doesn't charge late or origination fees. LightStream Personal Loans ...
2. Pay More than the Minimum See All13Items How to Pay Off Credit Card Debt: 10 Ways The first step in paying off credit card debt is to understand it. Create a spreadsheet or write down the balance on all credit cards and their corresponding interest rates. That way you know what you...
Remember, balance transfers offertemporarylow-interest rates. Theywillreturn to normal, so be sure to pay off your debt before they do. If you do decide to take this route, check out our guide on thebest 0% APR credit cards. Pick A Debt Payoff Method ...
What happens if you don’t pay off your credit card? Anytime you make a payment that’s anything less than the full amount, you’ll pay interest charges. Since credit cards typically charge 20%-24% interest, you could easily go into debt. ...
The best balance transfer credit cards can help you pause accruing interest while you pay off a balance. The 0 percent APR introductory offer could last from 12 to 21 months, allowing you to transfer any high-interest balances to the new card. By paying off the balance within the intro ...
Balance transfer credit cards Another option is to transfer the debt elsewhere, which will allow you to pay less interest while you pay it off. One way to do this is by taking out a balance transfer credit card. Depending on the card, you may be able to transfer your debt for up ...
Pay down credit cards in interest rate order:If you have balances on more than one credit card, pay at least the minimum due on each of them andthenapply any additional money you can scrape up tothe card with the highest interest rate. When that one's paid off, move on to the second...