GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you might read more about oureditorial guidelinesand our products and servicesreview methodology.
And not having that extra room in your budget can make paying off debt even harder.
Also see five myths about debt that nobody should believe.
Doing so can free up some extra money you were putting toward interest.
For example, many credit cards offer a promotional 0% interest for a period of time.
Then, it usually makes sense to allocate any extra dollars to the debt with the highest interest rate.
Tackling your debt this way is typically a good strategy.
Approaching your debt payments this way normally leads to the best outcome.
The idea is that you prioritize any outgoing money in that order.
For a retiree or someone on a fixed income, its important to prioritize the Owe portion.
That is, make a plan to pay down your debt over a reasonable amount of time.
Those payments are prioritized to ensure you stay on track.
More From GOBankingRates
Share This Article:
