We have six figure mortgages, car loans, student loans and sometimes credit card debt.
The faster we get the these six figure debt instruments under control and Into the five figure range
and eventually eliminated the better off our financial lives will be.
Credit card debt should be the first and most important debt to get rid of because it is usually the highest interest rate debt.
Student and car loans would be next and it depends on which one has the highest interest rate.
Mortgages are usually tackled last because the interest rate is usually lower than other debt instruments. The mortgage interest can also be deducted from taxes.
What we should really be focusing on is reaching six figures in our retirement and brokerage accounts.
When we reach six figures in these accounts the compounding magic really starts to take noticeable effect.
Especially when coupled with reinvested dividends and steady consistent contributions.