Small Debts or Big Debts? Quick Question

eyepunky11

Hi all,

Just wondering which is best to concentrate on?, the bigger debts or smaller debts?, or the one with the highest interest?

Ta

skylight

Usually you start with the ones with the largest interest rates as you are obviously paying more for those. However on the flip side getting rid of lots of smaller ones in the first instances does a lot for a moral boost - then collate the money you were paying on those and chuck it at the ones with the high interest rates.

Also check if you are due to have any special rates that are due to end soon.

eyepunky11

nice, thanks for that. I'm starting to make plans to cut back on everything and chuck it all at the debts....nasty debts, in your bed!!

Cleosmum

http://www.whatsthecost.com/snowball.aspx is invaluable when working out what to pay first and will also show when your debt free date will be if you follow it.