Question

What does paying off the highest interest rate credit card first make the most mathematical sense?

Answer 1

The highest interest rate credit card is the one that could cause you to pay more interest for a purchase you made. Keep in mind that the average interest rate for a credit  card is approximately 15.2 percent. Also, remember that credit card companies usually charge the card holder 4 to 5 percent of the monthly balance.  If you purchase and article that cost  $1,000 and you pay around $40 to $50 a month it will take you about 65 months to pay it off. As you can see, that will be a big amount of money to pay in interest, about $368 on average.  

By paying off the highest interest rate credit cards first, makes the most mathematical sense, and it will save you money in the long run. The credit cards with the lowest interest rates can be pay last, since the amount of monthly interest will not be as high. These makes more sense when you have multiples credit cards. The fastest you pay the highest interest rate credit cards, the more money you will be saving in the interest you did not pay.  

Answer 2

Credit cards usually have the highest interest rates. This is the reason why people tend to pay off the highest interest rate credit card first because in this way their are avoiding financial problems or having to pay too much money of interest. Mathematically speaking, it is better to pay the highest interest rates debts first and then the lowest ones.