Coming off of the holiday season, it’s easy to build up some debt.
The experts say there’s no better time to take the reins and begin paying it down.
Credit Industry Analyst Nathan Grant with Credit Card Insider tells KX News, the first step is to figure out how much debt you have, and where it’s coming from. Then, you can create a pay-off plan that works for you.
If you only have one big debt, the strategy is relatively simple: make the biggest monthly payment you can afford each month until it’s all paid off.
But, Grant says people are most likely juggling multiple debt accounts.
For this, he says to use the “Debt Avalanche Method”, meaning pay off your credit accounts in order from the highest interest rate to the lowest.
Start by making the minimum payment on time on all of your accounts.
Then, put as much extra money as you can afford, within your budget, toward the credit card with the highest interest rate.
Once that debt is completely paid off, start paying as much as you can on the account with the next highest interest rate, and so on.
The Analyst says since you’re prioritizing debts in order of interest rate, you’ll pay less overall and get out of debt faster.
Click here for more tips from Credit Card Insider.