Which credit card to pay first?

Maybe you've gotten a raise at work, or a bonus.  Maybe you're expecting a tax refund. You want to use the windfall wisely, but which credit card should you pay first?

   The usual recommendation is to pay the debt with the highest interest rate.                   

    Say you have three credit cards, and you carry a balance on each one.  The first card’s interest rate is 12%, the second card’s is 15%, and the third is 18%.  Regardless of how much you owe on each card, you’ll get the most bang for your buck if you pay down the third card.

   Why?  Because each dollar that you pay reduces the balance on which the interest is calculated, so next month, you’ll pay less interest.

   Be sure to make the minimum monthly payment on each debt, and make it before the due date.  This will keep your credit rating healthier.

   Don’t be fooled by the perks and benefits of the credit card.  Sure you may get miles for each dollar you charge, but how much are those miles costing you? In fees and interest?  Are there blackout dates when you can’t use your miles?  It might cost less to buy a plane ticket for when you want to travel.