How to know what debts I must pay first? | Debt Consolidation
If the end of the month arrives and we realize that we spend more than we should and that the money will not reach us to pay all our obligations, it is time to prioritize which are the debts that we must pay first.
Of course, this does not mean that we will leave other debts without paying for an indeterminate term.
Will only wait a little longer to cancel them.
So when choosing which obligations I must cancel first, experts recommend paying those that have a higher interest rate, which in our country would be credit cards. Cancel your card fee and propose not to use it the following month, so you will catch up with the rest of the expenses.
After the credit card, there are other debts such as vehicular credit (if you have one) or personal loans, whose interest rate is lower but not so much. And what you buy the next day, will come in the statement of the following month. Knowing this date to the right and the other way around is very important because this way you can plan your purchases, so as not to be surprised having to pay high amounts for the card. Finally, the debts of the mortgage loans are the cheapest, so we could cancel them last; However, we should not fall behind because we run the risk of losing good.
Another criterion for prioritizing debts is:
Those that have a guarantee (mortgages, vehicles), those that report to you at risk centers (cards, loans) and those that you have with someone you know (family, friends).
Choose from one of those criteria and don’t forget to save to cancel everything you can as soon as possible Choose an account that pays you a good percentage for your savings. Compare banking institutions here.