So you have all kinds of debt, which debt to pay first? Here are three easy steps to pay off loans quickly.
1. Make a list of all your debt
2. Write down how much you owe for each one
3. Write down how much interest you’re paying for each one (if you don’t know the exact interest, call and find out since it’s really important)
Some common debts include credit cards, student loans, mortgage, auto loan, and personal loans
Now that you’ve got your list, there are two approaches you can take.
Pay down the highest interest rate debts first. This is mathematically the fastest way you will pay off all your debt. Chances are your credit cards will be the ones with the highest interest rates, so credit card debt repayment should be your first priority.
Pay down the lowest balance first. Although this may take you a bit longer, it feels great when you knock down those small amounts first. This gives you extra motivation to keep going and pay down all the rest.
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ArtsMoneyTalk – Inspire Success