Debt payoff guide
How to pay off credit card debt with a strategy
Credit card debt can move slowly when minimum payments barely cover interest. A strategy helps you decide which card gets extra money and how much to assign this month.
Practical explanation
Start with a complete list
Gather balances, APRs, minimum payments, and any planned extra payment before comparing methods.
Check interest pressure
A high APR card or a minimum payment that barely covers interest may deserve earlier attention.
Example
A card with a $5,000 balance at 24.99% APR can cost much more each month than a lower-rate installment loan. The best first move should come from the full payoff comparison, not guesswork.
Common mistakes
- Treating every card the same when APRs are different.
- Adding extra payments before confirming monthly cash flow.
- Ignoring fees, promotional APR end dates, or minimum payment changes.
FAQ
Should I pay the highest interest credit card first?
Often, but not automatically. The full payoff order should compare APR, balances, minimum payments, and your goal.
What if I have no extra money this month?
Keep minimums current if possible, avoid new charges, and use the plan to identify what changes when extra cash becomes available.
Related reading
Make it personal
Build your payoff plan from your real numbers.
Enter your debts once, choose your goal, and see which debt to pay first.