Focus on paying off highinterest debt first from "summary" of Debt Free for Life by David Bach
When it comes to getting out of debt, one of the most important strategies you can use is to prioritize paying off high-interest debt first. This means focusing on the debt that is costing you the most money in interest charges. High-interest debt, such as credit card debt, can quickly spiral out of control if left unchecked. The compounding interest can make it seem like you are barely making a dent in your balance, despite making regular payments. By focusing on paying off high-interest debt first, you can save yourself a significant amount of money in the long run.
To do this, you should first make a list of all your debts, along with the interest rates for each one. Then, prioritize your debts based on the interest rate, with the highest interest rate debt at the top of the list. Once you have your list prioritized, focus on paying off the debt at the top of the list while making minimum payments on the rest of your debts.
As you pay off each debt, you can then move on to the next one on the list. This method allows you to make the most of your payments by targeting the debts that are costing you the most money in interest. It may take time and discipline to pay off high-interest debt, but the savings you will see in the long run will be well worth it.
By focusing on paying off high-interest debt first, you can take control of your finances and work towards becoming debt-free. It is a simple yet effective strategy that can help you save money and get out of debt faster. So, take the time to prioritize your debts and start working towards a debt-free life today.
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