Many Americans struggle to pay down their credit card debts, a challenge exacerbated by the holidays when credit-card spending balloons. The Federal Reserve estimates that nearly half of U.S. households are unable to pay their credit card bills in full each month. These households owe more than $800 billion in card debt—an average of more than $15,000 per household spread across an average of four credit cards. To pay it down consumers must regularly decide how to allocate repayments, above minimum requirements, among their different accounts.
Research: The Best Strategy for Paying Off Credit Card Debt
Pay off the smallest debt first.
December 27, 2016
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New!
HBR Learning
Finance Essentials Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Finance Essentials. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Strengthen your fluency in financial statements.