Credit cards A tutorial

If you have already reached your limit on the card with the lowest interest rate, you might consider what financial experts call "snowballing. " The idea of snowballing is to simply pay off the card with the lowest balance as a first step, which gets the ball rolling. Obviously, continue to make the minimum monthly payment on your other cards, so you do not accrue penalty fees. Do not reduce the amount of your payment each month, even as that balance becomes smaller and smaller. Move on to the next smallest balance, once the debt on the first card has been paid off.

10/15/09 14

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