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Who do you pay first in a debt repayment plan?

As an adult, you have to make some tough decisions that no one can make for you. One of these types of decisions relate to financial decisions. A person has to decide how to best manage their finances. This can be trickier than it sounds, and debt can creep up on a person and make it harder to make ends meet.This could be due to a variety of factors; many Chattanooga residents are surprised by an emergency situation where they have to come up with a lot of money in a hurry. Oftentimes people utilize credit cards to help them come up with the funds. However, credit card debt can quickly get out of control and leave you short at the end of the month.

Many wonder, how can I pay off this debt? If I design a debt repayment plan, who do I pay first? A bankruptcy repayment plan can help to answer those questions as those in debt should pay for necessities first and pay down higher interest rates first. A bankruptcy plan can consolidate interest rates and payments into a more manageable amount, and it's important to meet any legal obligations related to this type of situation. Any deferred loans should begin repayment as deferring that payment accumulates interest while it waits.

Whom to pay first will vary based on a person's financial situation. Each person's financial situation will have unique complexities that will need to be addressed. Remember that if you are involved in a child support situation, this is a legal obligation that will need to be fulfilled. Finally, you should understand that it's okay to ask for help during this time in order to get your finances back on the right track.

Source: bankruptcy.findlaw.com, "Which Debt to Pay Off First," Accessed October 2, 2017

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Mark T. Young & Associates
2895 Northpoint Blvd.
Hixson, TN 37343

Toll Free: 888-376-0282
Phone: 423-933-1606
Fax: 423-877-0363
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