Happy New Year! Are you not so happy to receive your credit card bill in the mail though? Did you go overboard with gifts or lose your inhibitions on spending? It’s okay, we’ve got 3 tips for you to pay off your credit cards to keep you on target with your resolutions:
- Start on the card with the highest interest rate first –This is the card that you should focus on first, but make sure you remit payments for your other cards. When that card is paid off, you can start on the card with the next highest interest rate.
- Focus on paying off the card with the lowest balance – Increase your payments on this card, which will be easier to pay off because of the lower balance. Keep making the minimum payments on your other cards, then focus on paying off the next card with the lowest balance.
- Pay them equally by exceeding the minimum payments –You may feel comfortable making equal payments on all your credits. Just make sure you pay more than the finance charge each month.
So, send your party suit or dress to the dry cleaners and relax… you can finally put your worries at ease, since you now know what to do with those credit card bills. To be on the safe side, add 3 to 6 months of your expenses into your savings, so you’ll be to cover the payments. But next time you get the urge to dance around the internet with your credit card, remember a credit card hang over awaits!