What's the best way to pay down credit card debt? LaTisha Styles, Millennial Finance Expert and Founder of Financial Success Media, LLC, outlines two popular strategies.
"In the first way," says Styles, "you pay off the debts with the smallest balance. That's how you get quick wins." This is known as the "snowball" method, because the satisfaction of seeing a debt paid off, no matter how small, can produce positive momentum – like a snowball rolling down a hill.
"In the second way, you pay off the debt with the highest interest rate," adds Styles. "It will take you longer to zero out that debt, but over the long run, it's going to be cheaper." This method reduces the overall interest charges that you will incur.
Both of these approaches are sound strategies for repaying credit cards, but a new study from the National Bureau of Economic Research (NBER) suggests that many consumer...
from MoneyTips https://www.moneytips.com/most-people-repaying-credit-cards-wrong/659
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