Figure Out Which Bills Take First Priority
When paying off debts, it’s important to consider which ones are higher. All debts need to be paid, but high-interest rates make those debts the costliest. Make these debts a priority and take care of them first.
Pay More Than The Minimum Balance
When you know which debts have higher interest rates, take a look at your statement and check the minimum payment. You will have to pay more than that minimum to see any real progress toward the principal. One good tip is to create a budget and make a list of all of your outgoing expenditures.
Build Toward Progress
Organize all of your debts from the ones with the highest to the ones with the lowest interest rates; from there, start paying more than the minimum balance on the highest ones while paying the minimum on the lowest. Once the highest debt is paid, work on paying off the next highest. Do this by paying the minimum balance as well as the amount you were paying on the previous bill. This will knock that bill out much quicker, and so on and so forth until all debts are paid.
Practice Mindful Spending
Finally, the most important step in saying goodbye to your debts is to practice mindful spending. Figure out where you can save money and cut corners by keeping track of your purchases. When you do this, you will begin to notice that you actually do have more money than you previously thought, and this will help greatly with paying off your debts.
This is not legal or financial advice. Please consult a legal or financial advisor for your specific situation.
