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List Everything You Owe
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This step is vital if you want to get debt free. |
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You must list all your debts and all your credit agreements. Include what you are paying each month and the interest rates being charged. It is vital that you gather all this information together. |
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Prioritise Your Debts
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Now that you’ve got everything listed you can work out which debt you plan to clear first. |
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If you have limited money then it makes sense to pay off the debt that is costing you the most - whichever one has the highest interest rate is the one that must go first. If you’ve got multiple credit cards with differing interest rates then concentrate your spare money on your most expensive card whilst maintaining the minimum payments on the rest. |
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Each month pay as much as you can afford off the most expensive card to get it cleared as quickly as possible. Once that one is paid off you move on to the next expensive. |
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Knowing what money you have and what your debts are costing you means you are able to make sure that your repayments really count. |
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the next step........
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