- Have a knowledge of your debt and their interest rate
Most often you’re faced with the thought of stashing away cash or saving them, when in debt- paying off debt is important than saving money, this is because, it gives you a balanced cash flow and you know where your financial position is. Create a list of all your debt and list the corresponding interest rate of each of them.
Make the list in descending order starting from the highest interest rate to the smallest rate. You should pay the highest rate first because it is costing you more cash flow than the rest of them.
Once you have the knowledge of your debt, you have a clear mind towards achieving your goal of getting out of debt. Knowing what you are up against makes your target of paying your debt achievable.
Lloyd Blankfein, me, the owner of cnntopnews, have a business management degree. Have 3 years of articles write.