Atlanta Bankruptcy Attorneys Clark & Washington Explain Which Kinds of Debt You Should Prioritize

    ATLANTA, GA, April 06, 2015 /24-7PressRelease/ -- The Atlanta bankruptcy lawyers, Clark & Washington, note the importance of establishing a prioritized debt repayment plan. Not all debts are created equal. For example, your mortgage is more important than your automobile or your student loans, but it is smarter in the long run to tackle your credit card debit first.

How To Prioritize Your Debts

As far as efficient debt management is concerned, structuring your finances in a way that provides the greatest long-term benefits is key. The best debts, if you can conceive of them as such, are the ones that have the lowest interest rates. Prime mortgage rates are currently at historic lows and have been for some time now, and this is where financial wisdom comes into play.

If you have the opportunity to invest your money and receive a higher rate of return, then it makes sound sense to go this route to capitalize on the higher potential profit. Many homeowners mistakenly assume the best way to pay down their mortgage quickly is to make higher payments, all the while not knowing they could eliminate a lump sum at the end of the year from accrued interest accounts.

Secondary priority debts consist of automobile and student loans, which tend to have rates near the 7 percent mark. The return on student loans can potentially be very high, depending on the field of study you chose.

The worst kind of debt to have - and thus the first you should tackle when faced with financial woes - is consumer debts such as credit cards. The Atlanta bankruptcy lawyers remind residents to pay their high-interest debts down before anything else.

For more information, feel free to visit them at http://www.cw13.com.

About Clark & Washington:

Established in 1983, Clark & Washington is now one of the leading bankruptcy filers in the Southeast. They have locations in Georgia, Florida and Tennessee. Clark & Washington specializes in personal Chapter 7 and 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.

For more information, visit http://www.cw13.com.

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