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Released: January 02, 2012
If you resolve to pay off credit cards this year, do it right
Source: Eileen Ambrose, The Baltimore Sun
Many consumers this New Year will resolve to pay off their credit cards, and their intentions are in the right place. But, according to a recent study, how they go about it is likely to be wrong.
Mathematically, consumers are best off eliminating the debt on the highest interest rate card first. But researchers found that many of us tend to pay off the card with the smallest balance first, even if it carries the lowest interest rate. By not tackling the most expensive debt first, we end up paying more in the long run.
Read Full Article: If you resolve to pay off credit cards this year, do it right
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