Credit cards can really help in a financial pinch. However, while the prospect of getting something now and paying for it later can seem very attractive, the debt and interest accrued from multiple credit cards can quickly turn into a major burden. If you have multiple credit cards with varying interest rates, it’s important that you note the amounts of your balances against their respective interest rates. Oftentimes, you can end up paying much more for items purchased with a credit card, and it’s for this reason that you should aim at pay off high-interest debt first.
How High-Interest Debt Affects You
According to the Federal Reserve, Americans hold more than a trillion in debt collectively. Individual debt can greatly increase because of high-interest credit cards. When looking over your debts, make note of:
- Interest rate
- Balance amount
- Any finance charges, if applicable
All three of these factors can lead to higher credit costs if left unchecked. If you have multiple accounts, it may seem more prudent to pay off the lower balances first to eliminate them systematically. Often referred to as the “snowball method,” it might be feasible if interest rates were not a factor. But since they usually are, you will be saving money in the long term by chipping away at a higher balance with a high interest rate. Prioritize your debts from top to bottom in terms of high balance and high interest, and then, by paying them off one-by-one, you can begin to shrink the size of your debt.
Don’t Let High-Interest Debt Get You Down
Debt can seem insurmountable at times, but by applying these tips and practices, you can be well on your way to financial freedom. Progressive Debt Relief can help you attain this freedom with the professional debt settling, negotiating, and counseling services offered by our expert team.
Defeat High-Interest Debt With Progressive Debt Relief
Progressive Debt Relief has the experience and ability to help settle high-interest debt efficiently and discreetly. Through free consultations and no upfront fees, our financial experts will work with your creditors to negotiate and settle your high-interest debt for good. To find out more about our services, or to schedule a complimentary consultation, contact us today.
