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Surviving Financial Crises

Getting Out of Debt

Is there any priority that I should think about when paying down debt?

Yes, you should pay off the highest interest loans or credit obligations that you have. High interest credit obligations like credit cards carry the highest interest rate. So, you should pay as much as possible on your credit card balance, plus the interest on the balance, each month until the balance becomes zero. If you plan it out, and pay a certain amount each month, without taking on any new debt, you will see the light at the end of the tunnel. Pay a consistent amount each month—as much as you can afford. If you think that you can pay off more, because of a wage raise or pay increase at work, use the extra cash that you are earning to reduce your debt.



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