Step #5: Pay
off other debt
Now is a good time to get more cash and pay
off other debts. If you have a car loan with a
high interest rate, or you purchased furnature or appliances
on a high interest rate, pay these off. You even
need to be very careful of these many "interest free" deals that are
being run during sales. If you miss a payment or don't get the
last payment in on time, they can sometimes go all the way back to
the very first payment and charge you some outrageous interest rate
for the entire life of the loan.
Next, if you only did three months on step
2, get your emergency savings up to 6 months.
Go
to Step #6: Invest
