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  • Apr 28, 2008 3:11 pm US/Pacific
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High Interest Loan Or Low Interest Credit Card?

 QUESTION:  Is it better to get a secured high interest loan to pay off credit card debt or pay off lower interest credit cards one at a time?
ANSWER: I would pay off the higher interest rate credit cards first.  Start with  the smallest balance/ highest interest rate card and pay that card off first.  

Once that card is paid off, take everything you were paying towards that card and apply to the next largest/next highest interest rate card.
Keep doing this until you have paid off all your credit card debt. 
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Money Matters is provided by:

David Schauer, CFA, MSFA, CFP®
Financial Planner
Hanson McClain
E-mail questions to moneymatters@kovr.com

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