August 27, 2010

Get Out of Debt (Part 2 of 4): Pay the Highest Interest Rate Debt First

The Best Way to Get Rid of Consumer Debt

The best way to get out of debt is to completely pay off your debts in order starting with the highest interest rate item on your list.  This should be done while still doing minimum payments on other loans.

Mathematically, this is the best method to get rid of debt. Paying off the highest interest debt first is also the most financially sound method.

Domino-Effect After the Elimination of The First Debt

The toughest part is to get rid of the first liability. Subsequently, that first debt’s payment will be
released and it will be easier to tackle down the following one on your list.  And so on…

The Fastest Way to Achieve Your Goal

If you plan to Get Out of Consumer Debt Within 3 Years, the highest interest method will get you there even faster.

Even dough it could be possible to still achieve your goal with reduced payments, we recommend that you maintain the same debt repayment amount and become debt-free a bit earlier.

By getting a lead on your original plan, it will also be easier to overcome possible bumps along the way.

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