With the costs rising for nearly everything due to high and persistent inflation, it's no surprise that many Americans are turning to credit cards to help pay for essentials. But while this approach can help fill in the gaps in your budget, it comes at a hefty price. According to the Federal Reserve Bank of New York, Americans currently collectively owe $1.12 trillion in credit card debt — more than 13% compared to one year ago.
Then you'll move onto the next-smallest debt and continue until you've paid off all your credit cards.Debt avalancheInstead of focusing on the smallest debt first, the debt avalanche method prioritizes the debt with the highest interest rate or the largest balance. You'll make minimum payments on all your outstanding debt and put any extra cash towards the credit card with the highest balance or interest rate.