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Those are hefty bills to add to the already spikingcost of livingnationwide.
However, she said not to carry it in your wallet.
By payingmore than the minimum, you reduce the principal faster, reducing the interest charged.
Orman said you must pay as much as you’re free to.
By tackling high-interest debt first, you save more money in the long run.
Many people dont realize they can negotiate lower interest rates with their credit card companies, Shirshikov said.
Lower rates mean more of your payment goes toward the principal balance.
This approach ensures that no single debt spirals out of control.
Orman said that debts include everything from money you borrow from a relative to your credit card company.
Each paid-off card frees up more funds to tackle the next.
you’re free to find a nonprofit credit counseling agency through theNational Foundation for Credit Counseling.
Establishing strong financial habits ensures you remain debt-free, Shirshikov said.
This involves budgeting, saving for emergencies, and avoidingunnecessary credit use.
However, Orman says you should look toward the future.
Redirecting debt paymentstoward savings and investments secures your financial future, Shirshikov said.
This practice can accelerate wealth building and provide a safety net for unexpected expenses.
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