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Check out TOD’s TIPS how to crush credit card debt and enjoy financial freedom sooner!  

1. Pay down the credit card debt with the highest interest rate 

Which card should you pay off first? 

Your best bet is to start paying down your credit card debt with the highest interest rate. Why? The credit card debt with the highest interest rate means you're paying the most amount of interest relative to the principal balance. 

With credit card debt, your goal is to reduce principal to limit the interest that accrues. Therefore, focus on repaying not only the interest payment, but also the principal balance. Once you have paid off the credit card with the highest interest rate, move onto the credit card with the next highest interest rate (and so on). 

2. Get a 0% APR Balance Card 

A 0% APR credit card gives you 0% interest on your credit card debt balance for a certain amount of time. 

That means you can transfer your existing credit card debt balance to a new credit card. Many 0 APR cards offer no interest on your credit card debt for 6-24 months, for example. At the end of the grace period, you will owe interest at an interest rate based on your credit profile and other factors. 

Therefore, with 0% APR credit cards, you can get a reprieve on credit card interest and pay off your credit card during the grace period. 

3. Consolidate credit card debt 

You can consolidate your credit card debt with a credit card consolidation loan, which is also known as a personal loan. 

With a personal loan, you can consolidate your existing credit card debt into an unsecured personal loan that is typically repayable in 3-7 years.  

If you plan to repay your credit card debt in this time frame and can obtain a lower interest rate than your current credit card interest rate, a personal loan is a great strategy to save interest costs. 

For example, let's assume that you have $10,000 of credit card debt at a 15% interest rate. If you can consolidate your credit card debt with a personal loan at a 7% interest rate and 3-year repayment term, you will save $2,634 and pay off your credit card debt earlier. 

You can use this free personal loan calculator to see how much you can save on your monthly payment. Need a Lender Referral? Ask TOD!

Now, go crush some debt!