Pay down debts in the right order: Messing up your payment sequence can cost you big

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Transcript

00:00Are you putting money towards higher debt balances?

00:03UAE-based debt advisors caution against it.

00:07Here's why.

00:08Paying high-interest debt can often get complicated, as it makes sense to attack debts with higher

00:14balances first.

00:16However, higher-interest credit card debt can pile up much quicker.

00:21But if you don't pay your auto loan on time, your car will get repossessed.

00:25And if you don't pay your home loan on time, your home can get foreclosed.

00:30So how do you prioritize your debt payments?

00:32Using a debt repayment strategy like Debt Snowball Method can help.

00:37With this method, instead of focusing on balances with high-interest rate debt, focusing also

00:43on small balances as much as possible can help as well.

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