Pay off the debt with the highest interest charge first



As credit cards generally charge higher interest rates, it is best to pay the bills in full each month. If you have difficulty paying your credit card bill in full, then pay as much as you can. At the same time, cut back on your credit card spending. The faster you reduce your outstanding balance, the less interest you will have to pay. 

If you have multiple debts, consider refinancing or consolidating your debts by transferring all the outstanding balances to a package offering a lower rate of interest. Before you do that, however, make sure you find out whether the lower rates apply for a limited period only. You should also find out what other terms and conditions may apply (e.g. fees and charges, fixed or flexible monthly repayment amounts).

No comments:

Post a Comment

Popular Posts