Title: Debt Crisis? Which Debts Should You Pay Off First?
Script:
Can you tell the difference between want and need?
How do you start to pay off your debt?
How can you create your budget?
How will you know if your money was lost?
Getting out of debt can be hard work and take time.
Many consumers struggle with which debt to pay first. While there is no single right answer that fits everyone, there are a few guidelines to help set priorities.
First, know what kind of debt you're dealing with.
From the financial perspective, it's smart to pay first your debt with the highest rate of interest.
CREATING YOUR BUDGET. A budget must be realistic.
Analyze past spending. You need to list your nonessential expenses. Make an emergency fund.
Know the difference between want and need.
NEED Something you have to have to survive.
Like food
Paying your rent and utilities
Getting to work
WANT Something you would like to have.
Brand new 4K 70inch TV
Cruise vacation
Designer Clothes
Appreciate what you have. Decide what is really important to you, and go after it. Learn how to be contented.
Sometimes treat yourself to some wants along the way, but do so when you can afford to, and enjoy those wants as the extras that they are.
You need to prioritize your debt but if you are still struggling. Contact a professional.
For more information on ways to reduce your debt, please visit www.newhorizon.org blog.