LIMA, OH (WLIO) - With mounting costs from the holidays and inflation, you may find yourself collecting credit card debt.
The number of individuals relying on credit cards continues to skyrocket, and as interest rates climb, that debt only gets more expensive. While paying that minimum balance might avoid late fees, that method usually leads to long-term debt. We spoke to a local financial advisor who says if you are paying down your debt but the balance isn't budging, it may come down to your payment strategy.
"You'll want to make a list of all your credit card debts that you have. Start with that and make a list and make a list of the interest rates on all those credit card debts. Start with that highest interest rate debt and work on paying that one off first while continuing to make the minimum payment on everything else. That way you can kind of eliminate those debts one by one," said Jeff Lee, financial advisor at Edward Jones.
Lee doesn't oppose the use of credit cards for those paying off that balance every month and encourages individuals to live below their means looking for any expenses to cut out.
