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Prioritize Your Debt
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Once you have all your debts sorted out, there are two things you should do. First, record the total debt you owe– that’ll get subtracted from your net worth later on, and give you perspective as to how “in the red” you are. Second, you will want to figure out what needs to be paid off first, which is usually the debt with the highest interest rate or the shortest repayment window. This will matter most when it comes to scheduling your financial future, discussed later.
Tips
- Once done, record your debt total by adding it all together.
- Create a priority system based on interest rate and repayment terms.
- This’ll matter most when building your schedule, so take your time!