The Right Order To Pay Off Debt
If you don't have any debt then I want to know your secret. But, if you are like most Americans then you know about debt far too well.
And, I know first hand that it can be very overwhelming. It can be so stressful that you have no idea where to even start to eliminate it.
According to the website Trulia.com, there is different kinds of debt. And, here is how Americans prioritize paying it off:
1. 40% said paying off your CREDIT CARDS should be the top priority. Which makes sense, because they usually have the highest interest rates.
2. 28% said paying your MORTGAGE should be first. You don't want to lose your house, so that makes sense too.
3. 7% said paying off their STUDENT LOANS is #1. Those usually have a lower interest rate though, and you've got a long time to pay them. So it's not the end of the world if you just have to do the minimum monthly payment for a while.
4. 4% said paying down a HOME EQUITY loan should be the top priority. Not all homeowners have those though.
5. 3% said paying off their CAR loan is the most important thing.
I think that credit card debt is the most damaging and should be paid off first. What do you think?