Best way to compare credit cards12/29/2023 ![]() Here are a few things to consider before choosing this strategy: The aim is to pay off all of your transferred balances on the new card before the low-to-no interest period closes. These are great tools for consolidating all of your credit card debt. If you have a good credit score, you might qualify for a balance transfer card, with a low to zero interest promotional period lasting anywhere from 6-18 months. ![]() Pay that off and repeat, until you've reduced all of your credit card balances to zero. 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. 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. Repeat the exercise until all your cards are paid off.Īvalanche method: pay highest APR card first.Add them together to get a new, bigger monthly payment to put toward the second card, and make that payment until its balance is zero. Once that card is paid off, you can take that monthly payment and add it to the minimum payment of the 2nd card with the next smallest balance.Identify the card with the lowest balance and add its minimum payment amount to the amount of money you dedicated towards paying off your debt in the steps above (for example: $100) to get a set monthly payment you'll make until the entire balance is paid off.While this won't reduce the amount of overall interest you will pay against all of your credit cards, it's a great way to build momentum: Once you've paid one card off, you'll be even more excited and determined to pay off the card with the next smallest balance, and so on until you've rid yourself of all credit card balances. Some financial advisers suggest tackling the smallest balance first, while maintaining the minimum payments on the others. There are three basic strategies: Snowball method: pay off the smallest balance first Once armed with your new knowledge of what you owe and what you can afford to put towards debt repayment, you're ready to choose which card to tackle first. ![]() This may help you in deciding which debt method might work for you. By doing this, you may be able to calculate which credit card may rack up the most (and least!) interest over time. Next to each card's APR, list the card's current balance. You should be able to locate each card's APR by looking at your credit card statements. List your credit cards' balances and APRs
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