In: Finance4 Aug 2013
An article that was posted on U.S. News brought an interesting subject to my attention. It talked about debt, more specifically which type deserved to be focused on more: high-interest or small-balance. On the surface, it seems like both of them are important and that they should be taken care of. However, when choosing the one to target first, it’s a bit more of a conundrum but one that I am sure can be looked at by those who have worked extensively in debt collection services.
When talking about such ideas, I think that it is worth talking about “snowballing,” for one. The reason that I say this is because of how well it encourages you to put forth a certain degree of money for debt, sometimes more than what is needed. This actually works in your favor in the long run because you will wind up owing far less. It is a great concept to consider, even though there are others which I’d like to touch upon as well.
For the sake of targeting an interest rate, you may want to consider going with the math method. This is utilized in order to apply more cash to the debt with the highest rate attached to it. This actually works well for you, too, because of how much less you will owe, as I’m sure debt collection services will tell you. The lower the rate is, the less that you have to pay, which is a great point that agencies like Rapid Recovery can illustrate.
If you have a smaller debt and wish to pay that off first, then the psychology method may prove useful. This is especially true if you have more debts to your name than others, meaning that you should focus on the most miniscule one first to get it out of the way. If nothing else, it certainly clears a potentially unneeded interest rate. While it’s probably easy to assume that higher debts will have higher rates, clearing up any of them will ultimately matter in big ways.
I think that your focus is going to be moving from one place to the next when multiple debts are in your possession. However, do not think that having to pay off all of them has to be a trial. In fact, if you look up ways to take care of all of them, you may be able to come across the procedure that will work best for you. If all else fails, though, then you may want to consider debt collection services since they can potentially grant you the advice you’re looking for, too.
Visit collections agency, Rapid Recovery Solution, Inc., if you’re looking for more information about commercial debt collections.. Unique version for reprint here: Which Amounts Should Debt Collection Services Hone In On First?.