Simple Rules To Eliminate High-Interest Debt

BOSTON (CBS) - All this week we are going to cover some of the simple finance rules from The Simple Dollar that lead to personal success.

Focus on eliminating high-interest debt. Set up a simple debt repayment plan by organizing your debts by interest rate, then attempt to make a double payment (or more) on whatever debt has the highest interest rate.

Make that double payment every month, then when that debt is gone, add the total amount of that payment to the payment you're making on the next debt on the list. Keep repeating until your debt is gone.

Then be sure to pay off your credit card bill in full each month so you don't land in hole again.

Request rate reductions on your debts, especially credit card debts. If you owe any debts, it never hurts to look into the possibility of reducing your interest rates on those debts. For credit cards, a call to your credit card company asking for a reduction may work. They don't want to lose you as a customer. For other bills, such as student loans, a consolidation can lower your interest rate. With your mortgage, refinancing can help.

Lowering interest rates can reduce your monthly payments and reduce the total amount of interest that you pay over the life of a loan, so any reduction you can get is a good thing for your wallet.

Teach your children about smart personal finance early on and be a good example. Talk to your children about money starting when they are little. Explaining to them the virtues of spending less than you earn will be lost on them if you are giving the lecture at the checkout line at Target's as you are saying no to the newest game they want.

Show them how it's done in your day to day actions. If you talk about spending less than you earn and then do it in your day to day life, the lessons are much more likely to stick. They will easily learn from your example.

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You can hear Dee Lee's expert financial advice on WBZ NewsRadio 1030 each weekday at 1:55 p.m., 3:55 p.m., and 7:55 p.m.

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