Debt Consolidation Tips: Which Loan to Pay Off First?
Need tips for consolidating debt? Here’s a pro tip to know which loan to pay off first.
You may be feeling overwhelmed if you have racked up a considerable amount of debt. The stress may start affecting your mind and probably force you into taking decisions that are not conducive to a healthy financial life.
You need to take control. You need to look for ways to pare down your debt.
A financial advisor can probably help you create a tailor-made plan in dealing with debt. However, we are going to give you a tip that will help you get started and see results faster.
“Pay off your smaller high-interest debts first.”
High-interest debt? Because of obvious reasons.
Smaller debt first? Because each complete repayment is a boost for you and will egg you on to close the one that is slightly bigger.
And continue by paying off the next high-interest debt / loan such as credit card bills, personal loans or other high-interest loans and so on until you are debt-free.
Sounds simple and yet few people actually do it. They think that debt consolidation is a complex situation, which it is, and only has a complex solution, which it doesn’t.
But now you know, you can take just one step and be on your way to live a debt-free life.
Pay off your smaller high-interest debt first to consolidate debt: agree or disagree?