The general principle is to pay the debts charging the highest interest first. This usually means the unsecured loans and is only common sense.
But if they charge the same interest you should pay the secured loans first, because if you fail, the consequences will not be so bad.
2007-07-21 08:51:59
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answer #1
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answered by Anonymous
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The unsecured debt like credit cards carries a high interest rate so it should be paid off first. Home mortgages are usually the lowest interest debt. There the main thing is to maintain the payments when due. Credit cards are about the worst kinds of debt to incur. Credit cards are a great convenience, but they are only good for short term borrowing with payment of the full balance each month. Then you are getting free credit. Not paying the full balance turns credit card debt into long term debt at high rates. It is the worst kind of borrowing.
2007-07-21 07:41:25
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answer #2
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answered by Anonymous
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You will want to pay off unsecured credit cards first because they charge the more interest than car and house loans.
2007-07-21 07:36:06
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answer #3
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answered by J R 2
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Unsecured first, higher interest rate, but keep the cards open that will increase you credit availability to debt ratio which will increase your credit score
2007-07-21 07:38:33
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answer #4
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answered by Pengy 7
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