THE GOLDEN RULE OF DEBT

Finweek English Edition - - MONEY -

“Start by pay­ing off debt that car­ries the high­est in­ter­est rate first,” says Peter Hewett, CFP and 2014 FPI Fi­nan­cial Plan­ner of Year Win­ner. You should fur­ther be try­ing to con­sol­i­date the debts you have left into a sin­gle, low-in­ter­est ac­count and pay that off.

Gerald Mwan­di­ambira, CFP and 2014 FPI Me­dia Award Win­ner, says pay­ing off ex­pen­sive debts f irst will al­low you to stop ac­cu­mu­lat­ing ex­ces­sive in­ter­est ev­ery month and start pay­ing off the prin­ci­pal amounts. “Never pay just your min­i­mum pay­ment, as this of­ten is just pay­ing the in­ter­est to ser­vice your debt. Make it a rule to al­ways pay more

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