Personal Finance Buzz

When it comes to paying off debt, there are a variety of plans offered by various financial gurus. Which debt repayment plan is the best?

When you are issued a credit card, you are assigned a credit card limit. This is the highest balance you can spend on the card. Anything spent above this amount will incur an above-the-limit fee. Your initial credit card limit is based on your income and credit history.

One of the biggest arguments in paying down credit card debt centers around the order that you should use when paying off your credit cards. Pay off the small balance first? Or the balance with the highest interest charges?

If you want to pay off your credit debt in order to save the larger amount of money, start with the highest interest rate.

Credit card debt is easy to rack up and difficult to pay down. One reason that it can be so hard to pay off credit card debt are the high interest rates that many cards carry.

If you are looking at matters as they relate to saving money as you pay off your debt, you should consider starting with highest interest rate debt first.