FAQ – Savings and debt

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Should I pay off high-interest or small-balance credit cards first, or does it matter?

There are two schools of thought to this, and it really depends on what makes the most sense for you. Some financial advisors suggest that it is best to get rid of high-interest-rate debt first. However, you may get a psychological lift by paying off small balances first, and then earmarking the money that you were paying on the small balances to pay off the high-interest balances. Read the article on the debt snowball method to learn more.

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