In repaying your debts, prioritize those debts that should be paid off first. Consider paying off those debts with higher payments and interest rates first. In making this determination, be sure to consider whether the interest is tax-deductible. Tax-deductible interest lowers the effective rate of interest.
If you are overloaded with debt, ask your creditors to renegotiate the terms of the loan by reducing the interest rate, the payment amount, or extending the loan term.
Be sure your loans do not have a prepayment penalty for early payoff.
Pay off high interest rate debt or replace it with a lower interest rate loan.
