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By Christine Aebischer / LearnVest
October 5, 2016

If you’re like most people, you have more than one credit card, each with its own balance, minimum payment and interest rate. Once you’ve confirmed all of your debts are accurate and accounted for, note the stats for each card to determine the order in which you’ll pay them off.

“In general, it makes sense to focus on one card at a time,” says Taylor. “And typically, the one with the highest interest rate is the first place to focus, just because it’s costing the most to keep a balance on it.”

Think interest rates don’t matter? The average consumer spends more than $2,500 a year paying off interest alone, according to NerdWallet. Focusing on one card at a time allows you to make the most progress in the least amount of time, since all of the funds you’ve set aside to pay down your debt can go toward one balance, instead of being split up among many.

Read More: Want to Get Out of Debt Faster? 4 Things to Ask Your Credit Card Company Right Now

One exception to this rule, Taylor explains, is if you have one or two cards with balances so small they can be knocked out in a month or two. If that’s the case, you may choose to prioritize those cards instead, in order to cross some debt off your list quickly and help motivate you to keep going. And if your cards have identical interest rates, Taylor advises tackling the card with the lower balance first, for the same reason. “You’ll hit a progress milestone more quickly, and it’ll feel better.”

It’s also important to keep in mind which cards (if any) have introductory offers and when they’re set to expire, as this could potentially move those cards up on the payoff priority list over time. Set calendar reminders for when the APR is going to change, so you won’t be hit with any unwelcome surprises and can readjust your plan accordingly.

Read More: LearnVest Vocab Lesson: 7 Credit Card Terms to Know Before You Swipe Again

Time to Take Action

Now that you know which card to tackle first, it’s time to start paying off that balance. “A budget is key to a lot of this,” says Taylor. “We can put credit card debt into two categories: One is overspending over time, and the other is large expenditures. An emergency fund will help with [the latter], and a budget will help with the [former], making sure you’re not continuing to overspend.”

Once you’ve reviewed your budget, decide on a reasonable amount you can dedicate to your credit card debt, and then apply any extra amount to your top-priority card, making payments larger than the minimum until that card is completely paid off. (In the meantime, you’ll be paying the minimum amount amount due on the cards lower on the priority list.) Once your top-priority card has been paid off, you can set your sights on the next one.

Not sure where the extra cash can come from? Taylor recommends allocating funds from a specific source, like a side gig, solely for your debt payoff. “It can really give a purpose for that extra work and allow you to see progress really quickly.”

Read More: Ask a CFP: ‘Should You Ever Close a Credit Card?’

And even though your other cards may not be a priority at the moment, it’s important not to fall behind on them. Taylor suggests setting them to auto-pay for the minimum amount each month, so you can avoid dreaded late fees and your credit won’t be negatively affected.

When you have multiple balances competing for your attention, even taking the first step toward debt-free living can feel overwhelming. But with these guidelines, you can take heart that progress is possible.

 

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