The 50/30/20 approach 3 simplifies budgeting: Pick a debt repayment strategy.
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These steps can help: Make a list of all your debt.īefore you start paying off debt, tally how much debt you have.
WHICH BILLS TO PAY FIRST PLUS
It takes a little organization up front, plus a strategy that fits your budget and your preferences. Try to make progress every month on reducing your debt.
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If you have too many payments every month, you might get behind on other financial goals such as building an emergency fund, taking a vacation, or adding to a retirement account. But unexpected or unplanned debt such as medical bills or credit card balances can be a tipping point into financial insecurity. The average American has about $80,000 in debt, excluding home mortgages.