Coronavirus Cash Crisis: How Do I Decide Which Debt To Pay First?

The video discusses strategies for debt repayment, emphasizing the importance of targeting high-interest loans first, such as credit card debt, to minimize costs. It acknowledges that some people prefer to pay off smaller debts first for motivation. Ultimately, the key is to have a personalized plan and stick to it.

Which type of debt should be prioritized for repayment due to its high cost?

• Student loans

• Credit card debt

• Car loan

• Mortgage

What is a common strategy for managing credit card debt?

• Ignoring the interest rate

• Paying off the balance as quickly as possible

• Carrying a balance month to month

• Paying the minimum balance

What motivates some people to pay off their smallest debt first?

• Tax benefits

• Lower interest rates

• A sense of quick achievement

• Higher credit score

Why might someone choose to focus on paying off the highest interest rate debt first?

• It offers tax deductions

• It improves credit score faster

• It is easier to manage

• It reduces the total interest paid over time

What is the most crucial aspect of debt repayment according to the video?

• Using a debt consolidation service

• Consulting a financial advisor

• Paying off the smallest debt first

• Having a detailed plan and sticking to it