Payoff one credit card or payoff the minimum of all cards
In these uncertain times, it’s inevitable to need extra cash every now and then. However, when our financial situation does not grant us the funds we need, we resort to other options.
Fortunately, when money is tight, one way to stay afloat is through credit. Regardless, this isn’t a quick fix but a responsibility. Ultimately, using it would require careful thought and the commitment to pay it back.
So, what is the best way to manage credit if you have multiple cards? Read on to find out because we will discuss that in this article.
In what order should you pay your credit cards?
When it comes to paying your credit accounts, you have to have a good strategy. If you don’t plan your payments and there are multiple balances, acquiring the cash advance could be counterproductive.
Considering that, how should you deal with your credit?
Well, first, assess your financial standing. Of course, you should prioritize making your payments, but understandably, it might be too heavy for some. This credit card problem is a risky play, so weigh your choices carefully. Depending on where you are at, you have two options:
Pay off one credit card
If you have the cash to do so, consider paying one credit card in full. Make sure this won’t take a toll on your budget.
Having one less credit card to worry about will help you better handle and track your finances. Hopefully, your remaining cards are a lighter load. If it gets tough in the future, at least you have the fully paid one as a backup.
Pay off the minimum of all cards
This works best if the total of all balances on each card adds up to a reasonable number. It is also fitting for those who can’t pay off one credit card in full. However, this approach might take a while before you complete all your pending debt. As long as you can commit to this setup and your finances can handle it, then you’re good.
The key is to go for the one that is most manageable and practical for you. Then, whichever you pick, make sure you stick to it.
What you can do
One thing you should focus on is avoiding the accumulation of high interest. The numbers might seem small, but they add up to a substantial amount of money over time. However, credit cards always come with this caveat, so what can you do to manage it more effectively?
Consider a loan
Loans are one of the quickest ways to get money to pay off your cards. So when you apply and get approved for it, make sure to use the cash wisely.
You can maximize the loan to pay off the card with the highest interest rate. This way, you don’t run the risk of collecting even more debt in the future.
A personal loan is an easy one to qualify for if you need to consolidate your debt. If the due date is nearing, there are quick online loans that will let you borrow cash in less than 24 hours. Otherwise, you could always borrow from loved ones for friendlier terms.
Overall, paying off your credit is not as intimidating as it may seem. If you struggle to manage your multiple accounts, consider lowering your limits and taking out loans to make them more manageable.
