‘Money: It's Personal' — Tips for paying off high-interest debt
SAN ANTONIO – No one likes high-interest debt — well, maybe the bank issuing the debt does, but consumers will want to avoid paying more than necessary.
Virtually no investment will offer returns to match the high interest some credit card companies charge when consumers start racking up debt, so it's best to pay it off as soon as possible.
The U.S. Securities and Exchange Commission is offering some tips to avoid high-interest debt and how to pay it off.
First, stash the plastic. Try not to use a credit card with a high annual percentage rate unless you know you'll have the money to pay the bill when it comes in the mail.
Next, the SEC says, make sure to know what is owed. Track credit card purchases and determine how much needs to be paid each month. If the balance can't be paid in full, plan for how much can be paid per month and how long it will take it to pay off the debt.
Lastly, try to pay down the credit card with the highest interest rate first. The SEC suggests paying as much as possible toward that debt each month until the balance is zero while still making payments on other debts.
For more information from the SEC, click here.
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