You made a budget, used it to help cut expenses, and want to use the extra money to pay down one of your two credit cards. What is the next step?(1 point)

Question

Responses

Determine which card has the lower balance and pay the extra money to that card.
Determine which card has the lower balance and pay the extra money to that card.

Make payments to both credit cards in equal amounts to lower total debt on all accounts and improve your credit score.
Make payments to both credit cards in equal amounts to lower total debt on all accounts and improve your credit score.

Determine which card has the higher interest rate and pay the extra money to that card first.
Determine which card has the higher interest rate and pay the extra money to that card first.

Determine which card has the higher balance and pay the extra money to that card.

Answer 1

The best next step would be:

Determine which card has the higher interest rate and pay the extra money to that card first.

This approach minimizes the amount of interest you will pay over time, thus saving you money in the long run and helping you pay off your debt more efficiently.