Pay off
the high interest debt first.
Now, if you have a few working years left and you have a retirement plan, then consider paying off
the high interest debt first (line of credit at 5.7 %).
I agree that she should look at
high interest debt first.
It is good to see you are paying off
your high interest debt first.
But paying off
high interest debt first will save you money in the long run because you end up paying less in interest altogether.
This is important, since you can save more money over time if you get rid of
high interest debt first.
I would focus on paying off that really
high interest debt first personally.
Very smart to focus on
high interest debt first.
In order to attack your debt and save money on interest, focus on paying down
your high interest debt first.
This may seem counterintuitive, because the math would seem to tell you to pay off
the highest interest debt first.
Steve suggested you tackle
the highest interest debt first.
This may seem counterintuitive because the math would seem to tell you to pay off
the highest interest debt first, but accumulating debt is as much a behavioral problem as a math problem, so get some easy wins under your belt by purging some easy debts first.
Many people who try to pay off
the high interest debts first often end up losing momentum in the very beginning and giving up because the large debt may seem too intimidating.
Begin by putting as much money as you can towards
your high interest debts first.
Simple math shows that you will get out of debt faster and spend less money by paying off
your highest interest debt first.
Goodness gracious, if we don't, then we lay on our deathbeds thinking, «well, at least I paid off
my highest interest debt first.»
Steve suggested you tackle
the highest interest debt first.
Instead, you pay off
your highest interest debt first.
Some advisers believe that you should pay off your small debts first, so you see that you are making progress, but Chris believes that financially you are better off by reducing
your high interest debts first.
You should certainly stop using your credit cards but you might need to keep them intact in the interim if you have debt where you are paying even higher interest rates than the cards, to allow you to juggle your money around so you're paying off
your high interest debts first.
A variation on the «pay off
your higher interest debts first» strategy is to transfer some or all of your balance from a high interest card to a low interest card or line of credit.
It doesn't matter what your balances are — paying
the highest interest debt first is always the quickest and cheapest approach mathematically.
I've always been the sort of personal to attack
higher interest debts first, because I never really had emotional feelings about any debt.
Some people are very driven and can pay off
the highest interest debt first, but most people need to see some victories to get the pumped up about reducing the debt.
You may wish to begin repaying
the highest interest debt first.
An individual or couple should pay down
higher interest debt first before considering making any additional payments on their mortgage.
But I also agree, paying
higher interest debt first is a wise priority.
I prefer the «pay off
the highest interest debt first» strategy as well, but there are many, many more people who love the idea of rapidly retiring existing debt — one loan at a time.
Focusing on
the higher interest debt first is logical.
Since the Credit Card act of 2009, issuers are now required to apply any amount paid in excess of the minimum payment to
higher interest debt first.
• To pay less interest over time, focus on eliminating
the higher interest debts first.
Not exact matches
Robert Abboud, a certified financial planner based in Ottawa and author of No Regrets: A Common Sense Guide to Achieving and Affording Your Life Goals, says
high -
interest - bearing consumer
debt should be tackled
first.
Although mathematically it makes the most sense to pay back the
debts with the
highest interest rates
first, for Sall, starting with the smallest ones — regardless of
interest rate — was far more motivating.
«The rule is an important
first step and will benefit some consumers who need relief the most, but a great deal of work is still needed to ensure that American families are no longer ensnared in the
debt trap of
high interest, abusive loans,» Michael Best, director of advocacy outreach at Consumer Federation of America, said in a statement.
«
First of all, if there's any
debt to pay off, pay off
debt --[such as] credit card bills or any
high -
interest credit,» said Harvey Bezozi, CPA, and founder of YourFinancialWizard.com.
If you direct any extra money to your
highest interest rate loan
first, you may save hundreds of dollars or more in extra
interest payments and you may be able to get out of
debt faster.
Similarly, the
debt avalanche method requires you pay down the
highest interest rate loan
first while paying the minimum balance on the rest of your loans.
And don't forget, tackling the
highest interest rate
debt first isn't the only way to speed up your
debt payoff.
A more cost - effective strategy is the
debt avalanche method, under which you tackle the balance with the
highest interest rate
first.
However, with the
debt avalanche method, the idea is to focus on the
debt with the
highest interest rate
first.
Our Global Market Strategies segment, established in 1999 with our
first high yield fund, advises a group of 46 active funds that pursue investment opportunities across various types of credit, equities and alternative instruments, including bank loans,
high yield
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Saving is making even more sense now because savings accounts will have fairly
higher interest rates, so if you have no
debt, my recommendation is to start with capping your Registered Education Savings Plan contributions
first because that brings you tax savings.
Pay off the
debt with the
higher interest rate
first, but also consider what
debt you have that is tax deductible.
If some of your balances are carrying an especially
high interest rate (anything over 10 % APR), you'll likely want to prioritize paying those
debts off
first.
If you have several loans and credit cards, focus on the
debt with the
highest interest rate
first.
Debt avalanche: When following this debt repayment method, you want to focus your efforts on the credit card that is charging the highest interest rate fi
Debt avalanche: When following this
debt repayment method, you want to focus your efforts on the credit card that is charging the highest interest rate fi
debt repayment method, you want to focus your efforts on the credit card that is charging the
highest interest rate
first.
Consider paying off
high -
interest credit card
debt first and then work your way toward paying off other types of
debt later.
But, instead, you order your
debts so you tackle the
highest -
interest debts first then work your way down the list.
Keep in mind that if you have
high -
interest debt (anything over 5 % or 6 %) you should pay off that
first since you will get a guaranteed return of that said rate.
The
debt snowball is a great idea, since there's no doubt it would give a boost to pay off the smallest
debts quickly, but one could maybe group the
debts into small and large, and then work on the small ones with the
highest interest first.