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Payment Allocation
Explanation:
When you send a payment to a credit card company, they will use your money to pay off the portion of your debt with the lowest interest rate first. This way, you continue to accrue high interest on the other portion of your debt.
Our Thoughts:
If you have a credit card with a low introductory APR for purchases, watch that you don't make purchases after the introductory rate is over. Likewise, if you get a card with a low introductory balance transfer APR, do not use that card to make new purchases.