Now that you know what your debts are and how much they are, you need to decide which are more important. You will want to just pay them all off at once, but you should look at each one and decide how important it is to pay that one off before another.
Is the debt secured or unsecured? Secured might be your business, house or car, something that can be repossessed if you don't pay. An unsecured debt, such as a credit card is not something that can be taken back but it can be canceled or charge you very high interest rates if it is ever opened again.
Here is an example of bills to pay off by order of importance:
- Secured bills.
- Unsecured bills.
- Necessities. (electric, doctors)
- Student Loans
- IRS or the government
- Highest interest rate credit card bills in order of declining interest rate.
If you set this up today with your business, you will see a noticeable difference in one year. Once you set up your bills to be paid off in the most important order, you will feel better, have more money, and be successful. Your sending out checks anyway each month, just take the time to set up this system and start paying your debt off completely. Setting this up takes only a one time effort, then just your regular bill paying each month. What changes is what you pay and how much you pay towards each bill.
You will feel accomplished when the first bill is paid in full.
Comment Preview