How to Pay Off a Credit Card?

Hey Hubsters! Today we'll go over how to pay off your credit card debt step by step Credit card debt is expensive and it can really hurt your credit score

So the first thing you want to do is get back to good standing on any accounts that are overdue If you're still racking up debt, then you definitely want to stop the bleeding and often times that just involves cutting back on non-necessities — streaming services, high-end coffee — you know, cutting those things out of your budget so that your monthly spending is less than your monthly income That is the goal here Now you're finally ready to start paying off your debt using one of two methods The first method involves the lowest balance that you have

Paying that off first to really motivate you to then pay off your next lowest balance and so on and so forth It's not the cheapest way to go about it, but it does certainly help psychologically The second method involves the highest interest rate So you want to pay off the highest interest rate, not the highest balance So basically that means putting the biggest monthly payments toward that balance with the highest interest rate first and putting your minimum monthly payment on everything else

You do that until that balance is paid off, so on and so forth, with the next highest interest rate It might take a little bit more time, but it's actually the cheapest way to pay off debt and that's what we recommend the most WalletHub also recommends setting aside money from each paycheck to build an emergency fund once you approach being debt free You want that emergency fund because the last thing you want is to become debt free and then get right back to where you started if an emergency situation comes up and you just don't have the cash to pay for it So to find tools that will actually help you pay off debt even quicker, head to WalletHub

com through this link right here