BMO Harris Bank Financial Tip of the Week: Prioritizing Your Debt
CHICAGO, Nov. 29, 2012
CHICAGO, Nov. 29, 2012 /PRNewswire/ --As part of BMO Harris Bank's ongoing
commitment to financial literacy and Helping Make Money Make Sense, BMO Harris
is providing weekly financial tips. This week's tip provides recommendations
on how to prioritize your debt.
Is all debt created equal? At BMO Harris Bank, we don't think so. In order to
pay down debt faster while paying the least amount of interest, you'll need to
prioritize some debt over others.
Although you'll ultimately want to pay off all of your debts, being strategic
about which ones you pay off first can save a significant amount of money,
potentially hundreds or thousands of dollars.
Here's how we recommend you prioritize paying down debt:
1.Credit Card Debt – Credit cards are a convenient form of payment, but
chances are this is your most expensive debt, which is why it's so
important that you pay it off as quickly as possible. If you carry a
balance on more than one credit card, first pay off the one that charges
the highest interest rate.
2.Mortgage Loan – If you own a home, this is likely the largest debt you
carry; however, it's usually at a lower interest rate. Paying off your
mortgage sooner rather than later can also save you thousands in interest.
Paying extra each month, making an additional payment every few months, or
splitting your monthly mortgage into bi-monthly payments are all ways you
can pay down your loan faster.
3.Auto Loan – Similar to a mortgage loan, auto loans typically charge lower
interest rates. And, like mortgage loans, you can potentially save a
significant amount in interest by paying off the loan faster.
4.Student Loans – Although it depends on what type of student loans you
have, interest rates are generally low and there are several types of
repayment options. It's important to pay these loans on time each month to
help build your credit.
For more helpful tips visit, http://helpingmakemoneymakesense.com/
Helping Make Money Make Sense is brought to you by BMO Harris Bank, WGN, CLTV,
WGN AM 1070, Chicago Tribune, RedEye and Hoy.
About BMO Harris Bank
Based in Chicago, BMO Harris Bank N.A. provides a broad range of personal
banking products and solutions through over 600 branches and approximately
1,300 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota,
Nevada, Arizona and Florida. BMO Harris Bank's commercial banking team
provides a combination of sector expertise, local knowledge and mid-market
focus throughout the U.S. Deposit and loan products and services provided by
BMO Harris Bank N.A. Member FDIC. BMO Harris BankSM is a trade name used by
BMO Harris Bank N.A. BMO Harris Bank is part of BMO Financial Group, a North
American financial organization with 1,600 branches, and a retail deposit base
of approximately $180 billion.
SOURCE BMO Harris Bank
Contact: Vanessa Hall, Vanessa1.Hall@harrisbank.com, +1-312-461-6543
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