IT’S YOUR MONEY
Determine Your Risk
Tolerance for Paying Off
Credit Card Debt
by Robert Rhinesmith
T
here is obviously more than one way
to pay off credit card debt. How-
ever, it is your risk tolerance that will
determine your success. The import-
ant thing is to choose the method that moti-
vates you most and get started now.
FIND THE BEST BAL ANCE TRANSFER
CREDIT CARD
1. PAY THE MOST EXPENSIVE BAL ANCE
FIRST
If you want to get out of debt as
cheaply as possible, list your debts going
from the highest interest rate to lowest.
Make the minimum monthly payment on
each, and throw all your extra cash at the
highest-interest debt. This is sometimes
called the debt “avalanche” method of
repayment.
This strategy is the cheapest because
when you’ve paid off all your debts, you
will have paid the least amount of interest
overall compared with other strategies,
says J. Dennis Mancias, a financial adviser
with Planto Roe Financial Services in San
www.himpowermagazine.com 29