Comments on: Which Debt To Pay Off First? http://studenomics.com/debt-reduction/which-debt-to-pay-off-first/ Tue, 22 May 2012 12:21:22 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Roger http://studenomics.com/debt-reduction/which-debt-to-pay-off-first/#comment-11965 Roger Sat, 03 Oct 2009 15:39:58 +0000 http://studenomics.com/?p=2039#comment-11965 Not a bad list of priorities, although it seems to be more for if you are fearful of going into debt in the near future. If your finances are strong, you have a reliable income (which, admittedly, can be a bit hard to come by in today's economy), and an ample emergency fund, making a priority of your highest interest rate debt (usually credit cards) will save you money in the long run and make the debt easier to pay down. If there's essentially zero chance you will go bankrupt, making your debt repayment priorities on the basis of which ones will persist after bankruptcy makes little sense. That said, if your finances are shakier, then by all means, work to pay down the debts that won't be wiped out by a bankruptcy first, before worrying too much about those that can be cleared if you're forced to fill for bankruptcy. Just my thoughts. Not a bad list of priorities, although it seems to be more for if you are fearful of going into debt in the near future. If your finances are strong, you have a reliable income (which, admittedly, can be a bit hard to come by in today’s economy), and an ample emergency fund, making a priority of your highest interest rate debt (usually credit cards) will save you money in the long run and make the debt easier to pay down. If there’s essentially zero chance you will go bankrupt, making your debt repayment priorities on the basis of which ones will persist after bankruptcy makes little sense.

That said, if your finances are shakier, then by all means, work to pay down the debts that won’t be wiped out by a bankruptcy first, before worrying too much about those that can be cleared if you’re forced to fill for bankruptcy. Just my thoughts.

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