Debt paydown… Where do you start?
When developing a strategy to pay off your debt, you need to always target the debt with the highest interest rates first! It baffles my mind when I hear about people paying down their mortgage that has an interest rate of 3.5% when they have $5,000 in credit card debt at 20% interest! That makes no sense and is a very unwise financial move…
Paying off your debt should be a priority for every Elite Nurse Practitioner… I have paid off all my debt in the last 3 years and let me tell you: IT IS AWESOME. It lowers your expenses and increases your freedom CONSIDERABLY. I am not a slave to anyone! When you have massive debt, you are a slave to it…
When I began paying off my debt, I first started with the debt that had the highest interest rate, which were my student loans, and then worked down to my mortgage, which had the lowest interest rate.
Paying off your debts with the highest interest rates will ultimately result in more cash in your pocket during your debt paydown strategy. This cash that you save can then be put towards paying off your other debts in a snowball type fashion. Before you know it, you will be debt free in a few years if you make it a priority.
The same goes with business debt (which you should AVOID). Pay off your highest interest rate debts first, which would probably be your business credit cards, and go down from there. A business that has no debt is a business that generates significant profits!
