One of man’s greatest fears is living under the stress of debt. But worrying about debt will not help take the debt way, instead, however heavy the debt burden is, the decision to face your problem head on and find a lasting solution is the best way to go.

First, one should list all the debt one has and then go through a plan based on prioritization. So organize your debts looking at which one will cost more throughout the life of the debt, and focus on paying those first. For example the smallest debt might be the most dangerous especially if it is accumulating interest. Begin with the most risky loan because the earlier you pay it back, the less amount you will end up paying.

Pay as much as you can on the first debt with the highest interest, so each month you’ll want to pay as much as possible on that debt. Focus on the debt with the next-highest interest rate once you’ve paid off the one with the highest rate. Once you’ve paid off that one, proceed to the next-highest, and so on until you’re debt-free.

Also as a rule of thumb, you need to prioritize debts depending on basic needs. First and foremost, make sure that you have enough money for food and basic clothing to survive. This also includes any medication you may need for illnesses and payment for medical service
Whether you are paying rent or have a home mortgage keeping your housing payment up-to-date is essential so you have a place to live. If your finances get so tight that you are unable to pay your mortgage or rent concrete or making sure you have a roof over your head first.

Any utility costs that are a must pay like water and electricity should come next. Strike off unnecessary bills like cable television. Prioritize secured debt higher that unsecured debt, because defaulting on secured debt will lead to loss of collateral. Do not increase the priority of one debt because someone has threatened you.

The last thing you want to do is to panic and start shifting goal posts. You must stock to an effective plan. Once you have your debt payoff priority, put your list somewhere where you will see it on a daily basis.   The point is to keep the list somewhere you will look at it daily.

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