Reducing and Managing Debt – Pay Off Credit Cards Bills Last, Mortgage First
Posted on | February 10, 2010 | No Comments
If you are looking to reduce and manage your debt then you will want to make sure that you pay off credit cards last and your mortgage first. Unfortunately, many people feel that their credit card bill should come first and this is completely false. The first payment that you should make every month is on your home mortgage.
There is absolutely no reason to pay your credit cards off if you are going to default on your home loan. If you feel that you are going to have to file bankruptcy in the near future your credit card bills are going to be erased anyway so why pay them now. In essence, you are paying for your credit cards that are going to basically be worthless anyway.
Unfortunately, many Americans believe that they must pay these credit card bills just to survive in the current economic environment. They would rather lose their home and go to foreclosure than to lose a credit card. This is a very sad way to thank and the exact opposite way to get out of debt. Credit card bills should always come last.
The first bills you should pay each and every month are your mortgage payment and your car payment. If you cannot make these two payments you should completely give up on your credit card payments and take the necessary steps to make sure that your mortgage and car gets paid.
Author: Jeremy North
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