- April 7, 2008 at 8:47 pm #257120
Check out Dave Ramsey – he has
awesome advice on financial matters.
But to answer your question:
*You must have shelter so pay the house
*Autos are also important so pay that one
(or sell it and get a cheap used one).
*All other CC debt should be paid in the “snowball”
method. (You can always call the CC company and ask them to reduce your
interest rate OR transfer balance to a lower interest card.) List them
all from lowest to highest balance. Pay all minimums but add extra to “A”;
when “A” is paid off add the money you had been paying them to “B”
and continue down the line until all is paid off.
I wouldn’t start a college fund or
retirement fund until debt is under control (you have to be able to make it to
I do recommend putting a little aside for
an emergency fund (even $10-$20 per paycheck) is a good way to start.
Is there a general rule of thumb about what debt should be paid off in
what order? And where do long-term goals fit in?
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