Test Your Debt Management Tips Knowledge

Being debt free is something that is just out of reach for so many Americans today. It seems that no matter how hard you try to pay your credit card bills, the pile of debt keeps growing larger each month. The good news is that there are a few simple ways that you can reduce your debt. Today we are going to test your debt management tips knowledge to see if you have what it takes to be debt free.

Is it important to track spending?

a) YES

b) NO

The answer to this question is an overwhelming yes. The first step to get out of debt is to look at what you spend. Wasteful spending is one of the main causes of debt. Think about all the purchases you made this month. Can you think of 2 or 3 that were not necessary? If you can then you are probably a wasteful spender. Get this under control and you will see immediate results.

Should I pay the card with the highest interest or lowest balance off first?

a) Highest interest

b) Lowest balance

The answer to this question is lowest balance. This may seem to contradict what your thoughts about debt management. The reason you want to pay the low balance card off first is that you will feel accomplished for getting a card paid off. You will be able to use this momentum to continue on your road to success. If you have a credit card that has the highest interest and it happens to be your lowest balance card, then you are in luck. By paying this card down you are essentially hitting two birds with one stone.

I hope you enjoyed reading these debt management tips. Good luck on your journey to have a debt free life. Stay persistent and you will succeed.