Which balance should you pay off first?
Credit card debt is at its highest level in six years. Among households with debt, the average credit card balance is nearly $16,000, according to Nerdwallet. You might not be dealing with that much debt. But figuring out how to pay it all off can still seem daunting.
These steps can help you get back in the black faster.
Figure out which debt to focus on first.
Logically, it makes sense to pay off the balance with the highest interest rate first. It will help you pay less overall in interest charges. But some argue there's a psychological benefit to paying the smallest balance off first to keep you motivated and on track.
Read More: Logically, it makes sense to pay off the balance with the highest interest rate first.