Question

Prompt

How would paying off the lowest outstanding balance credit card first be beneficial over paying off the one with the highest
interest rate?

Answer 1

Pay at least the minimum payment on all credit cards each month to avoid penalties. After that, work toward paying off the debt on the card with the highest interest rate. While some advocate for paying off your smallest debt first because it seems easier, you’ll save more on interest over time by chipping away at high-interest debt.

Explanation:

100% on edge

Answer 2

NOT: Actually paying the one with the highest interest rate is logically the right thing to do, because you can shorten the amount that you spent on interest or charges by month, but paying off the lowest outstanding balance credit card first makes sense if you could transfer the interest balance which is the highest ...

Explanation: