1. List debts by interest

We sometimes want to stash those bills away and never look at them but the one big secret to paying off your debt will be knowing where you are at. Take out all your bills and list your debts from smallest to largest.

Then, listing them in order from highest interest rate to lowest interest rate. Because the one with the highest interest rate is costing you the most money. That’s the one you should pay off first.

Once you have the totals and their rate of interest, you’ll know exactly what you’re up against before you begin to tackle the highest interest rate debt.

2. Have an emergency savings fund

Let’s face it emergencies are going to happen. And even though no one expects them, everybody should prepare for them. But stashing away for a crisis doesn’t even have to derail your debt investment plan.

Prior to starting to really repay your debts, build up a little emergency savings fund of at least $1,000 for any unexpected expenses or bills that could pop up (think car repair, medical expenses, etc.). This is your “rainy day” finance, or money you tap into when something unexpected happens.


If you do have an emergency and need to use some money from your finance, build it up again before paying off more debt. (But be sure to pay small payments on your credit cards along with other debts.)


3. Make smallest monthly payments

You’ll want to be sure to always pay your smallest payments on time for every debt you have — to avoid paying higher interest and late fees. So, if you’re trying to repay the highest interest rate card first, put more money toward that card every month. While continuing to make the smallest payments on the other debts. Then move to the next highest interest rate card and so forth.


The best way to keep on top of monthly credit card payments is to go by the card’s closing date. Compared to the payment due date. The closing date pops up your invoice for this month, so any transaction after that date is included within the next month’s announcement.

You’ll discover your card’s closing date on your statement. The balance on the card as of the closing date is the one who’s reported to the credit bureaus. So, you pay off the balance before that date, then your statement will show a zero balance — that not only allows you to avoid interest charges and fees on your credit card. Yet this strategy will even help you improve your credit rating!


These tips will help you become a little more debt free and feel free to call us to get the much needed help going forward.