Why is it advisable to pay off high-interest debt first?

Choosing to pay off high-interest debt first is a sound financial strategy because it significantly reduces the overall interest you will pay in the long run. High-interest debt, such as credit card balances, compounds faster than low-interest debt, meaning that as time goes on, the amount owed can grow substantially. By prioritizing these debts for repayment, you minimize the total interest that accrues, freeing up more financial resources for savings or other investments over time.

This approach also tends to lead to improved financial health more rapidly. As you eliminate high-interest debts, you not only reduce your monthly obligations but also potentially enhance your cash flow, allowing you to allocate funds towards more productive uses. This can lead to a sense of financial relief and build momentum as you begin to see significant progress in your debt repayment journey.

While quickly eliminating all debt seems appealing, it may not address the burden of high interest, which can continue to accumulate. Larger purchases might seem possible as debts are paid down, but without focusing on high-interest obligations first, you may still face long-term financial instability. Similarly, consistently managing and paying down high-interest debt is more directly related to improving your credit score than simply paying off any debt. Shifting focus solely to achieving a higher credit score may overlook