Question for the Money Doctors
Question submitted on May 13, 2013.
QuestionI have had several debts sent to different collection agencies. How do I pay down and which one do I choose first?
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.
For additional information visit http://www.360financialliteracy.org/