Final answer:
Paying off the lowest outstanding balance credit card first can be beneficial for motivation and momentum, even if it's not the most mathematically efficient approach.
Step-by-step explanation:
When paying off credit card debt, it can be beneficial to start by paying off the credit card with the lowest outstanding balance. This approach is called the Snowball Method and is popularized by financial expert Dave Ramsey. The Snowball Method focuses on tackling the smallest debt first, regardless of the interest rate, as it provides a psychological boost and motivates individuals to continue paying off their debts.
By paying off the smallest debt first, you can quickly eliminate one of your credit card balances. This can give you a sense of accomplishment and momentum to continue paying off your other debts. It's important to note that while the Snowball Method may not be the most mathematically efficient approach in terms of saving on interest payments, it can be effective in helping individuals stay motivated and committed to paying off their debts.