- ROANOKE -
- The average American has $3,000 in credit card debt.
- If the interest rate on your cards are about the same, pay off the one with the lowest balance first, then the next lowest.
- If one card has a much higher rate, pay it off first to save interest expenses.
One of the biggest barriers to saving money is debt.
According to the Federal Reserve, the average American has about $3,000 in credit card debt.
If the interest rate on your credit cards are about the same, Tim Cerebe with Freedom First Credit Union says to pay off your lowest balance first, then snowball that payment to the next loan.
"Once that is paid off and you're making all of your minimum payments like you should, once you pay that debt off, instead of having that money go back into your budget, you snowball up and have that money go up into the next debt."
Tim Cerebe, VP Community Development, Freedom First Credit Union
If you have a card with a much higher rate, you should pay that one off first to save interest or look for a card with a lower rate.
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