Working Out A Debt Repayment Plan – The First Step
Start by paying debts that charge you the highest interest first. It is recommended that you pay off the debts that are charging you the highest interest first, since borrowing from those creditors is costing you the most money. So you will save money on interest charges when you pay off those high interest rate debts first. However, there are exceptions to this general rule. If you are likely to get discouraged because it is taking a long time to pay off that high interest rate debt, you can start with the lowest balance debt. Getting some small debts paid off will motivate you to keep going.This is your first step in your debt reduction plan.
