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Paying off credit card debt is a financial goal that can save money and reduce stress. Reducing credit card debt may also improve one's credit score. However, achieving this requires a plan tailored to individual circumstances. Here are three methods to consider for tackling credit card debt.
The snowball method involves paying off debts from the smallest balance to the largest. By making minimum payments on all cards except the one with the smallest balance, individuals can focus extra funds on eliminating smaller debts first. Once a card is paid off, attention shifts to the next smallest balance, continuing until all debts are cleared.
For those with good to excellent credit scores, transferring balances to a new credit card with an introductory 0% interest rate might be beneficial. This strategy consolidates multiple debts into one account, potentially reducing interest costs if paid off before the promotional period ends. However, balance transfer fees often apply.
