CUNA 2023 diamond award trophy icon

CUNA 2023 Diamond Award Winner

Financial Education

Three Costly Misconceptions About Paying Down Debt

Serious couple going over their finances and debt consolidation options.
info dialog icon Learn more about out savings options. Click here.

So you decided it’s time to pay down your credit card debt… Now what?

Choosing the best and fastest course to financial freedom can be difficult. Different repayment options work better for different people. While we can’t tell you what works best for your particular financial situation, we can recommend what not to do. So when making your game plan, remember to avoid these three debt repayment misconceptions:

Myth 1: Save money with a debt consolidation company.

While it’s true that certain companies can help you negotiate with your creditors and reduce your overall balance, they often charge expensive fees for their work. In the end, you may wind up paying more than you already owe.

If you’re curious about reducing your debt, consider contacting a financial advisor or counselor, who can examine what you owe and figure out your best repayment strategy.

Myth 2: Transfer your credit card balance to a new, low-interest card.

Transferring your current high-interest credit card balance to a lower-rate card can save you money—technically. However, it’s not always as easy as it sounds. Often cards that advertise balance transfers come with attractive introductory rates followed by steep interest hikes after a few months. Plus, some cards charge a pricey transfer fee.

If you want to use a balance transfer as a debt-busting strategy, make sure you read the fine print on your new card, and pay off the balance within the promotional period.

Myth 3: Spread repayment evenly across all lines of credit.

When faced with multiple credit card balances, it’s tempting to just pay them off evenly. Seems like the easiest choice, right? The problem with this strategy is that each card has its own interest rate, and the higher-rate cards are costing you more. So rather than paying them equally each month, target the most expensive card by increasing your payments. Once it’s paid off, you can focus on the next most-expensive card, and so on.

Source: Balance Financial Fitness.

Better Debt Management Starts Here. Manage regular payments, track your spending, transfer your balances to lower rate credit cards, and enjoy personalized debt and budget counseling our trusted partner.

Comments Section

Please note: Comments are not monitored for member servicing inquiries and will not be published. If you have a question or comment about a Quorum product or account, please visit to submit a query with our Member Service Team. Thank you.

Notify of
Inline Feedbacks
View all comments
CUNA 2023 diamond award trophy icon

CUNA 2023 Diamond Award Winner

Financial Education

Quorum derives no benefit from businesses in return for placement in this blog.

Would love your thoughts, please comment.x