Selection Process: What debt is most important to pay?

Nothing is more of a head scratcher in some ways than credit card, but for a number of reasons you might not believe.

Almost 70% of the population in the United States battles back and forth with some sort of credit card debt, and that debt is the kind that builds quickly, particularly when you’re using credit cards to make every day purchases on things like groceries and gas or for emergency buys like repair on the roof, car problems or anything else that has some price point to it that you can’t afford at the moment.

In times of convenience and crisis, and everything in between, we turn to credit cards. Good or bad, that is the hand we’re dealt.

But that debt, the kind from credit, isn’t exactly going away and your struggle continues as you attempt to pay it off in a timely fashion and refute efforts to want to use the card again and thus only compound the issue at hand.

So with credit card debt not going away any time soon, what exactly is your game plan for getting rid of the debt or at least attempting to pay on the right credit card bill at the perfect time?

The most important element of credit card debt is focusing on two aspects: interest rates and closing accounts. The latter is quite simple: you don’t want to close accounts per say, because it will take a chunk out of your credit score but if your card isn’t carrying a balance and you’re paying a annual fee for no reason, then you’re wasting, not saving, money. So in that instance, canceling is the better option.

Obviously, if you’re debating between the 10% interest rate on your Visa or MasterCard bill versus the department store card at Target that is carrying triple that rate, you want to take care of the latter.

Those tricky department store cards also spell trouble in the instance where you use them, you get some sort of introductory rate, usually 0% interest for a certain number of months. The key is not getting hit with backlogged interest rates on those credit cards and thus make those priorities so that 12 months or 24 month no interest plans don’t creep up on you at month 11 or 23, respectively, and you’re suddenly on the hook for thousands in extra money on that so called perks card.

Credit card debt is frustrating and can be avoided in most instances, but if you have it, combat that debt with decisions that don’t put you in a non-winning situation where you’ll never climb out of owing money somewhere.