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Question for the Money Doctors

Question submitted on May 13, 2013.

Question

I have had several debts sent to different collection agencies. How do I pay down and which one do I choose first?

Answer

Some schools of thought suggest that you should pay down the debts with the highest interest rate, as in the case of a credit card. Others think that you should pay off the smallest balances first, then add what you were paying on that debt to the next to the smallest balance, and so forth.

You haven''t commented on how you incurred these debts, but it will take discipline and time to get out of debt. Keep at it and good luck whichever method you chose.


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