debt payment
When you have current debt, what should you do first? Pay off your debt or focusing on your investment or savings plan?
To make the correct decision, you can consult with your credit card customer service whether they can help you with a lower interest rate or another restructured payment plan when you have a significant amount of debt.
If you are offered by a good debt-repayment plan, it can be the right thing to pay your debt first.
In most cases, some experts will recommend you to use 10% of your funds for debt repayment and another 10% for your wealth accumulation.
The advantages of simultaneously savings and paying off your debt at the same time are:
- It is important for you to see the growth of your wealth; it will motivate you to make your financial plan as well as your debt payment plan successful.
- It will make you be discipline in life, improve your lifestyle and not fall into the same debt again.
Remember not to create a new form of debt by using your credit cards while you pay your old debt. It would be like digging another hole for you.
