Based on a 2012 survey conducted by the National Foundation for Credit Card Counseling, around four in 10 Americans have revolving debt on their credit cards. Many Iowa consumers may have plans to put extra money toward their credit card debt to completely pay it off or at least lower the balances. There are multiple approaches that consumers can take to pay off their credit cards.
One of the approaches is the snowball method, which is focusing on the card with the lowest balance. After the first card is paid off, consumers can start paying the card with the next lower balance and continue until that one is completely paid off. A second approach is to pay the card with the highest interest rate first. Since the highest interest rate card can cause the most financial distress, consumers would start paying off that card while still making monthly minimum payments on the other cards.