Step-by-step approach to managing your debts
From ArticleWorld
Pointers
To help you begin to prioritizing your debts, start by trying to repay the money that you owe which has the highest interest rates. Next, what is the amount of the debt you owe, if you don’t know it, figure it out. Being able it make full on a debt can give you the incentive to continue. So, try to remove the debt where you owe the smallest amount quickly. Do not be late for a payment it will add on more to your debt.
Do’s
If you want to quickly pay off your debt, consider paying it off in the following order
- First, repay debt to people that could injure you.
- Second, debts that have high interest rates like credit cards and store cards. These types of cards are usually the culprits when it comes to high interest rates.
- Third, pay off personalized debt from finance companies.
- Fourth, repaying off personal loans from banks and lenders- like high street lenders.
- Fifth, pay off second mortgages because they have high interest rates.
- Sixth, pay off loans from friends and family.
- Seventh, pay off your mortgage.
Advice
You will need lots of discipline and motivation to repay off your debts.. Also, remember that to achieve your goals you need your finances as well as your debts firmly under control. Study your spending habits and slash back if you have to. If necessary get another job, a second part-time job could prove fruitful.