Day 32: Decide Which Debt To Attack First
For the purpose of this post, when you read attack, think ‘send extra payment to‘.
After making minimum monthly payments to all of your creditors, it’s time to pick a specific debt to attack first.
If you want to pay the lowest amount of total interest – attack the debt with the highest interest rate.
If you want to receive an emotional boost and see en entire debt paid off – attack the debt with the lowest current balance.
If you want to feel good about being out of a specific type of debt (regardless of balance or rate) – attack the debt that ‘bothers you the most‘. (Think personal loan, payday loan, credit card debit, IRS debt, etc.)
You can send one extra payment every month – or you can make multiple extra payments every month. Either way, pick a debt and attack it!
I look forward to reading your comments -Click here to read all of the 33 Days And 33 Ways To Save Money And Reduce Debt posts.
Observant readers will note that this series has taken much longer than 33 days. I can assure you, I am blogging as often as life permits.