Pay off debt with highest interest first to get debt-free
Pay off debt with highest interest first to get debt-free
- Thursday, 24 March 2011Women who want to ensure they have no
debt problems when they retire have been advised to pay off their arrears with the highest interest rates first.
Such is the opinion of Sarah Pennells, editor of a women's finance website, who also stated that people tend to pay off the smallest debt first as an incentive.
She advised: "If you've got a credit card, store card and maybe a personal loan they're all charging different rates.
"If you want to get rid of your debt as quickly as possible, throw the maximum amount of money at the debt that is charging the highest interest rate."
In this way, consumers can become
debt-free faster as their outstanding balances will not increase too much due to the interest.
Ms Pennells made these suggestions after Saga released its price indices on March 22nd.
It was found that around 21 million Brits aged over 50 face even higher inflation than the rest of the nation, which may cause problems when they retire.

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