To save money in repayment, how should you rank your debt?

Ranking your debt by interest rate is the most effective strategy for saving money during repayment. This approach focuses on prioritizing debts that come with higher interest rates, as they accumulate more interest over time. By paying off high-interest debts first, you reduce the overall amount of interest paid, which can significantly lessen the total cost of borrowing.

High-interest debt, such as credit card balances, can quickly become overwhelming if not addressed promptly. By tackling these debts first, you not only save money but also expedite the debt repayment process, allowing you to clear your financial obligations more efficiently.

In contrast, considering factors like loan term, lender reputation, or payment plan options may not directly impact the total cost of debt in the same way. While these aspects can influence other areas of debt management, the interest rate is the key determinant in how much you will end up paying in the long run. Thus, focusing on the interest rates allows for more strategic repayment and ultimately improves your financial situation.