Does it matter which credit cards I pay off first?
Not really. Pick the strategy you’re most likely to stick with.
If you make to-do lists just to cross things off, you might like the snowball method. That’s when you pay off your smallest balance first. Then the second-smallest, and so on. A lot of experts like this approach because knocking out entire balances can build motivation to keep going until all your debt is gone.
If ‘efficiency’ is your middle name, you might prefer the avalanche method. That’s when you focus on paying the balance attached to the highest interest rate first. This saves you more money over time because you’ll pay less in interest.
I did interest rate first. B/c those bills that I had $300 and $600 on, I pay them off monthly. But then the ones that I couldn’t pay off monthly, I went by the ones with the highest interest rate. Then I closed them out. I couldn’t believe I had credit cards with 29% APR. What was I thinking? But now I have three bills left to pay. Two are no interest and the way I set my auto draft to pull, they’ll be paid off b/4 the interest is due. The other one I just pay the monthly amount and it’ll be paid off in 15 months now. So, I won’t worry about it. And again, I’m done!
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I am glad you found a system that works for you, and tackling high interest cards first seems like a wise money saving way to go.
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