It is a worthwhile goal, but sometimes it can be difficult to know where to start.Without a plan, it is easy to get discouraged because the debts do not disappear overnight.
Knowing your debts is the first step to create a plan that will allow you to cancel before and save money in the process.
Therefore, you should ask your financial institution features a breakdown of your debts (outstanding amount, interest rate, cancellation fees, etc ...)
Pay off debt with highest interest rate first
Each debt has its corresponding interest rate, some higher than others
The first type of debt to be paid are the credit cards. Typically this is the kind of debt that charges a higher interest. Once your credit cards are paid, we can start looking for other debts, personal loans or car loans are the following alternatives.
Saving for the mortgage when we´ve already canceled the rest of the debts
The mortgage debt is often the greatest, but at the same time has the least interest rate. Being a big debt, your cancellation will take years. Better to pay all other debts first, increase our level of savings and our self-esteem to get eliminated loans. Before you cancel your mortgage, check your other debts have been paid.
Have you developed a debt settlement plan already?
What are you waiting for?
