Wrapping up our blog series How to Prioritize Your Debt: 5 Tips to Keep in Mind (Pt. 1), below we will provide discuss some final tips to remember as you rank your debt from highest to lowest priority to pay off.
How to Prioritize Your Debt: Final Issues to Remember
Tip 4 – Moderate to low-priority debt should be debt with lower interest rates.
Once your three highest priority debts have been covered (as discussed in the first two parts of this blog series), next, you should pay debt with moderate to lower interest rates. Here, it’s important to note that, while it’s always preferable to make more than the minimum monthly payment on your debt, by the time you are ready to pay debts associated with lower interest rates, you may be low on funds.
Therefore, make sure that, with such debt associated with lower interest rates, you at least make the minimum monthly payments so that creditors don’t end up jacking up the interest rates on this debt because you have missed (or were late on) a payment.
Tip 5 – Deferred debt will likely be your lowest priority debt.
In ranking your debt, prioritize your debt that has been deferred as the lowest priority. Such debt can include student loans or possibly other private, personal loans that creditors may grant more leeway with when people may be out of work or otherwise struggling to pay off their debts.
Additional Tips for Prioritizing and Paying Debt
- Put the most money towards your highest priority debts so you can pay these debts down as soon as possible.
- When possible, try to pay more than the minimum payment on your debt (or as many debt payments as possible).
- Figure out a good method for keeping track of your monthly debt payments so that you do not miss any single payment (as missing even one payment on certain debt can cause the interest on that debt to be raised by creditors).
- Don’t forget about your savings – if possible, try to invest a little bit of money each month into your savings after you have made all of your debt payments.
- Know when to get professional debt relief help.
When taking steps to prioritize your debt is not enough, don’t waste time trying to shoulder overwhelming debt on your own. Instead, contact a debt relief professional like a Denver, Colorado bankruptcy attorney at the Law Office of Jon B. Clarke to find out if there may be a better way to obtain real relief from debt and achieve a financial fresh start.
Colorado Bankruptcy Lawyers at the Law Office of Jon B. Clarke, P.C.
If you are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C.
For more than 35 years, Mr. Clarke and his diligent support staff have been successfully helping our clients resolve even the most complex bankruptcy cases for both individuals and businesses alike. Our experienced legal professionals are committed to providing each of our clients with the personalized debt relief assistance they need, and we will work tirelessly to ensure that our clients’ cases are resolved as favorably and efficiently as possible.
Contact Us Today
For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950 or email us using the contact form on this page.