Not all debts are created equal – Sydney Morning Herald

Heres my guide to the order you should repay your debts.

Really awful debt

This is the tooth decay of debt.

Sure, the ads are cute but if you calculate the interest rate on pay day loans or convenient loans when youre caught short, such as Nimble, you could be paying interest as high as 50 per cent a year or more.

Thats awful. If you have one of these loans you need to stop everything else youre doing and concentrate on paying it off as quickly as you can. Then never use them again.

Bad debt

Is debt youve incurred for items that will depreciate in value, or experiences which made you feel good at the time but now you only have the Instagram feed to show for it.

Its credit card debt, personal loans, store cards, “buy now pay later” providers, s…

Read the full article at: https://www.smh.com.au/money/planning-and-budgeting/not-all-debts-are-created-equal-20190422-p51g5d.html

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