Control Debt

Once you know what you owe, make a plan to control debt with these 5 tips:

  1. Pay off credit cards with high interest rates first—then get rid of them.
  2. Pay as much as you can on your smallest debts and pay at least the minimum on large ones—even modest accomplishments can be great motivation.
  3. If you buy a home, it should cost no more than 2 to 2.5 times your household income, and your mortgage should be no more than 80% of the home’s value.
  4. Aim to pay off debt using incoming cash flow, not savings.
  5. Evaluate paying off low-interest debt versus saving more.

 

Are these tips helping you? Please let us know in the comments below and be sure to share with friends and family!

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