Everyone knows it is a good idea to reduce your debt load. With less debt, you save money on interest charges and reduce your risk of financial catastrophe if your income is disrupted and you are unable to make payments. If you don’t have enough to make debt payments, you can fund investments and build wealth instead of working to get back to zero net worth.
Some people are much more successful at debt reduction than others. What key mistakes prevent people from paying down your debts?
1. High Interest Accounts
It is hard to pay down the principal on a debt when the interest rate is high. Too much of your payment gets burned up paying interest charges and too little actually goes to paying down…
Read the full article at: http://www.csmonitor.com/Business/Saving-Money/2016/0418/Avoid-these-eight-debt-reduction-mistakes-when-modifying-your-budget