Sounds weird, maybe not. Most people have a mortgage, it’s the largest personal financial debt in our portfolio. Then it would make sense that you would want to reduce this large debt and start paying off the smaller ones. Don’t do it !! Your mortgage usually has the lowest interest rate attached to it. Although the principal amount seems very big, you probably have other debt that should be paid off first.

Credit cards carry the highest interest rates. They should be your primary target of elimination, or fast track pay down. If you add up all the interest you are paying for all your debt you will be surprised at the total amount. Then why not focus on this first and free up some disposable income to start paying the smaller interest debt.

Whatever you do, don’t defer from contributing to your Retirement Fund. Remember the tag line “pay yourself first”. This specifically applies to your future, start early and don’t ever quit building your nest egg. No one will be there to save you from financial needs, look after yourself.