Kill the highest interest rate

Are you paying off credit cards, loans or overdfrats each month but still have savings in another account thinking that you are earning interest?

I was in this situation, paying off the minimum amount each month, until one day I bit the bullet and spent my savings on paying off some of my debt.

It is hard to deal with, but in the long run it's worth it. Try this:

Put all your debts into a list in order of interest rate. With the highest at the top.
Aim to pay this off first. Tell the other companies that you need a couple of months break in repayments and use all of your combines resource to pay of the first debt on the list.
When you do - celebrate. Well done for focusing to eliminate debt.
Then move on to the next debt, snowballing the amount you have been using to pay off the first.
You'll feel good about becoming debt free and pay off your debt faster than paying 'minimum payments'.

Use any positive cash you have to tackle the debts with the higest interest rate first. Stop giving the banks money that isn't theirs.
Kind regards,

Joseph Lewis
Tags: debt interest payments
Inserito il 20-06-2012 02:43 | 0 Commenti | Preferito 1 volte | Segnato 0 volte come inappropriato


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