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How can I determine how much debt I have and prioritize which debts to pay off first?

Curious about Handling debt

How can I determine how much debt I have and prioritize which debts to pay off first?

To determine how much debt you have, you should gather all of your statements and bills, including credit cards, loans, and any other debts you owe. Make a list of each debt, the total amount owed, and the minimum monthly payment required.

Once you have a complete list of your debts, you can prioritize them based on the interest rate, the size of the debt, and other factors. Here are some common strategies for prioritizing debt repayment:

1. Highinterest debts first: Focus on paying off debts with the highest interest rates first, such as credit card balances.

2. Smallest debts first: Alternatively, you could prioritize paying off the smallest debts first to get a sense of accomplishment and momentum.

3. Balancing multiple debts: Another approach is to pay the minimums on all debts but focus extra payments on one debt at a time, then move on to the next one once the first is paid off.

Ultimately, the most important thing is to make a plan and stick to it. Consider creating a budget to ensure you can make regular payments towards your debts while also covering your other expenses.

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