How to know what debts I must pay first?
So when choosing which obligations I must cancel first
Experts recommend paying those that have a higher interest rate, which in our country would be credit cards. Cancel your card fee and propose not to use it the following month, so you will catch up with the rest of the expenses.
Even to determine what we are going to pay, there is an order that we must follow. If the end of the month arrives and we realize that we spend more than we should and that the money will not reach us to pay all our obligations, it is time to prioritize which are the debts that we must pay first. Of course, this does not mean that we will leave other debts without paying for an indeterminate term, we will only wait a little longer to cancel them.
It is important to know the due date for payment: by law, it is not the date of transfer / payment of money that counts, but the date of posting. Therefore, it is in vain for you to transfer money from your own bank in time if it is credited after only two days. Likewise, it is useless to transfer the amount from your account with the same bank in the evening, if it occurred after the daily closing.
Another criterion for prioritizing debts is:
Those that have a guarantee (mortgages, vehicles), those that report to you at risk centers (cards, loans) and those that you have with someone you know (family, friends).
After the credit card, there are other debts such as vehicular credit (if you have one) or personal loans, whose interest rate is lower but not so much. Finally, the debts of the mortgage loans are the cheapest, so we could cancel them last; However, we should not fall behind because we run the risk of losing good.
Choose between any of these criteria and do not forget to save to cancel everything you can as soon as possible. Choose an account that pays you a good percentage for your savings. Compare banking institutions here.