Prioritise your debt repayments

Tackle your debt strategically.

Credit cards and online/mobile loans typically charge higher interest rates than other types of debt, so it often makes sense to focus on reducing that sort of debt first by paying down more than the minimum each month, while still making the minimum payments on other loans, such as a mortgage or car loan.

Where should you start?

Know what you owe. Use the activity sheet below to make a list of all your debts and payments.

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You’ll then be able to see how much monthly income you have left over to make extra payments towards reducing your high interest debt.

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You don’t have to pay it all off immediately. Prioritise the debt with the highest interest rates first.

 

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