Esteban has a large credit card balance, such that his minimum monthly payment is $250. Every month he makes that payment and puts another $150 into his savings. His sister, Moira, says he should stop putting money into the savings account and start paying $400 per month toward the credit card debt. What do you think?

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Business

Alondra Livingston

14 February, 16:46

Esteban has a large credit card balance, such that his minimum monthly payment is $250. Every month he makes that payment and puts another $150 into his savings. His sister, Moira, says he should stop putting money into the savings account and start paying $400 per month toward the credit card debt. What do you think?

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Karli Vargas · Answer 1

I think Moira is right. It's important to pay off your credit card debt as soon as possible because the longer you take to pay it off, the more interest will accumulate (effectively making you pay more over time)