PHILADELPHIA (CBS) — The new year is a good time to get your finances in order and the best place to start is with a list.
Time to get out all those bills, write down how much you owe and what interest rate is being charged, says Lesley Katz, a CPA in Lower Gwynnedd, Montgomery County.
“Prioritize based on those items that have the highest interest rates and those with the lowest dollar amounts. The reason you’d want to focus on the highest interest rates first is because you’re paying the most for that money so you want to get those out of the way. The reason you would look at the lowest dollar amount is because you want to feel as if you’d accomplished something, you want to wipe something off.”
Make a list of all your expenses, including trips for coffee and take-out and see where you can trim to allocate more money to pay down those bills.