Q: I have been trying to get my finances into order but I have a question when it comes to paying off my credit cards. I've heard that it can take a long time to pay them off by just making the minimum payment, but I have three cards; how should I approach paying them all off?

A: Great question. Firstly, by only making the minimum payment, it can take up to 18 or 20 years to pay off credit card debt. Let's say you have a $2,000 balance with an interest rate of 18%. By only paying the minimum payment of $40 per month, you will take approximately 18 years to retire that original $2,000 debt and also pay over $3,800 dollars in a crewed interest. Simply by doubling that monthly payment to $80, you can retire the same debt in about 3 years while paying less than $400 dollars in interest.

When it comes to paying down multiple cards, it can get a bit trickier. You may want to first target the card with the highest interest rate. In this way, you will be attacking the most costly card, and it is certainly the most efficient way to attack debt.

Alternatively, some financial professionals suggest retiring the smallest balance first to gain that feeling of accomplishment. This method also works, provided the interest rates on your multiple cards are relatively similar.

If you can afford it, one simple solution is to double the minimum payment, or better, on each card and have a race to 0. Finishing with a total of three 0 balances is one game worth playing. 

Remember, once those card balances are paid off, start saving the same monthly dollars in an emergency savings account: you'll be surprised how quickly the dollars can add up!