How Can You Pay Off Your Credit Cards?

Which card to pay off first?

Many Americans have, or will become over extended with their credit cards. If they are fortunate, they may have negotiated a lower interest rate with their credit card company.

Maybe they have literally "frozen" their credit cards in ice, as some "experts" have suggested. Perhaps they have cut their cards in two with a pair of scissors. The strategy behind this is to just stop using the cards, while keeping the account open, to keep your credit viable.

The consensus seems to be two different strategies, in paying off your credit card debt. One strategy is to pay off the card with the highest interest rate first. The other strategy is to pay off the card with the lowest balance, hoping the" wanting it done now" accomplishment of it, will have a positive psychological effect.

Who are we fooling? It was the "wanting it now" mentality that got us in the fix with our credit cards in the first place.

In most cases, we know the right procedure is to pay off the card with the highest interest first. This makes the most sense. Benjamin Franklin once said: A penny saved is a penny earned and he was right on the money.

If you have multiple credit cards, determine which one is charging the most interest. Stop using that card. Pay as much on that card as you possibly can and as often as you can, until the balance is paid off. Try to never close an account, because that will possibly have a negative effect on your credit.

Remember, you are not looking for positive psychological effects. You are looking for a paid off credit card. If you need to have a pat on the back, look in a mirror and tell yourself you made the wisest decision for your particular situation.