Pay Off High-Interest Debt

Is debt acquired to purchase something that is going to benefit you financially in the future, usually with low interest. That means it's either going to generate income or allow you to make more money in the future.

Examples of good debt:

Things to keep in mind wrt repaying your debt:

• Make the down payment as large as possible. This will reduce the interest on the cost of purchase,
• Debt repayment per year < 20% of annual Post-tax income,
• Monthly installments < 10% of Monthly i-hand salary,
• Use "...

With this method, you pay off your debts from the smallest balance to the largest balance, regardless of interest rates.

When you pay the smallest debts first, you start to clear your low debts away very quickly. Doing this feels empowering. Once you've paid off a debt, yo...