Fix Your Finances 3.0: credit card repayment strategies 

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

INDIANAPOLIS, Ind.-  For most Americans, credit card debt is just another part of life.

Paying off your credit card balances can be difficult if you don’t have a plan. Here’s what FOX59 financial expert Pete the Planner recommends when it comes to credit card.

Repayment strategies:

Option #1:

Attack the balance on the card with the highest interest rate.

This means pay the minimum due on all of your other debts, and then pay as much as you can on the card with the highest interest rate.

“If you do that, you’ll pay the least amount of interest possible,” said Pete.

Option #2:

Focus on paying-off your credit card with the lowest balance.

By paying the minimum on all your debts except your credit card with the lowest balance, you will quickly pay down that bill and feel as if you’re making substantial progress.

“You just take out the smallest balance debt as quickly as you can and then you start getting zero balances on these smaller cards and you start to build momentum and you’re in there,” said Pete.

Option #3:

Pay the “minimum due” on all your credit cards...Pete the Planner does not endorse this method.

He says in the long run this enables more interest to accrue.

“The third way—don’t do it,” said Pete.

Notice: you are using an outdated browser. Microsoft does not recommend using IE as your default browser. Some features on this website, like video and images, might not work properly. For the best experience, please upgrade your browser.