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How to calculate which credit card to pay off first

admin by admin
September 17, 2021
in Credit Cards
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How to calculate which credit card to pay off first

Paying off your credit card with the highest APR first, and then moving on to the one with the next highest APR, allows you to reduce the amount of interest you will pay throughout the life of your credit cards.

This method will rid you of your balances slightly quicker than the snowball method, but the principle is the same: You calculate a monthly payment in the same fashion; pay off your highest APR credit card, and then add that first card’s monthly payment amount to the minimum payment due on the next card in line, to determine its monthly payment amount. Pay that off and repeat, until you’ve reduced all of your credit card balances to zero.

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