Decide which debt to pay first and prepare a strategy
Now that you have reviewed your credit report and have created a budget, it is time to
decide which debt on your credit report to pay first.
It is recommended that you double up (or pay more than the regular payment) on the
smallest debt that you have. In the mean time, continue to pay only the minimum payment
on all the rest of your debts that appear on your credit report.
Do not be concerned with the charged interest rate. That should not be the focus. Your
focus should be to pay off the smallest debt that you have listed on your credit report as
quickly as you can.
decide which debt on your credit report to pay first.
It is recommended that you double up (or pay more than the regular payment) on the
smallest debt that you have. In the mean time, continue to pay only the minimum payment
on all the rest of your debts that appear on your credit report.
Do not be concerned with the charged interest rate. That should not be the focus. Your
focus should be to pay off the smallest debt that you have listed on your credit report as
quickly as you can.
Once you have paid the smallest debt
in full, then and ONLY then should
you move to the next smallest debt
on your credit report.
Continue to send the regular monthly
payment to the next smallest debt on
your credit report and ADD to the
regular payment all the money that you
were sending to the previous smallest
debt.
Once the second smallest debt on
your credit report is paid in full, you
will move to the third smallest debt
on your credit report and repeat the
process.
in full, then and ONLY then should
you move to the next smallest debt
on your credit report.
Continue to send the regular monthly
payment to the next smallest debt on
your credit report and ADD to the
regular payment all the money that you
were sending to the previous smallest
debt.
Once the second smallest debt on
your credit report is paid in full, you
will move to the third smallest debt
on your credit report and repeat the
process.
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You should continue to repeat this same process until ALL of your debts on your credit
report are paid in full.
If you believe that you have no extra money to send to your creditors, I challenge you to
look over your daily weekly and monthly expenses. You may be surprised to find that you
are spending needlessly on things you may be able to do without.
You may have some free time during the week after your regular job and may want to
consider a part-time job. Maybe you have some time on the weekends.
You might consider starting a small business that makes your skills you currently use at work
to people that you know to earn some extra cash.
Think about ways to make some extra money. The more you make means the more money
you can send your creditors and the faster you can be rid of your debt.
What you DO NOT want to do is give up. Believe that you will succeed and take action
towards your goal of debt free living.
report are paid in full.
If you believe that you have no extra money to send to your creditors, I challenge you to
look over your daily weekly and monthly expenses. You may be surprised to find that you
are spending needlessly on things you may be able to do without.
You may have some free time during the week after your regular job and may want to
consider a part-time job. Maybe you have some time on the weekends.
You might consider starting a small business that makes your skills you currently use at work
to people that you know to earn some extra cash.
Think about ways to make some extra money. The more you make means the more money
you can send your creditors and the faster you can be rid of your debt.
What you DO NOT want to do is give up. Believe that you will succeed and take action
towards your goal of debt free living.