red purse with credit cards and a measuring tape around it
By Mary Hunt
It's the new year, which means it's time to take a deep breath and pay down your credit cards and other debt. Once you get started, you'll be happy you did. Photo by: Jenny Bowers
Prioritize credit card bills
The interest rate is what matters most when you're digging out of credit debt because that's what costs you more money in the long run. Pay off the highest-interest-rate card first, regardless of the balance, while also paying the minimum on your other cards, says Liz Weston, author of The 10 Commandments of Money. Once the highest-rate card is paid off, apply the same amount you'd been paying on it to the next-highest-rate card, and so on.
Give your cards a break
Tempting as it may be to keep charging, don't-not even for inexpensive stuff. "Charges add up faster than you realize, so leave the credit cards at home," says financial planner Harrine Freeman, author of How to Get Out of DebtRead More »from Decrease Your Debt