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12 Common Money Myths You Need to Forget You’ve Ever Heard

June 17, 2021 · Saving & Spending

You should pay off larger debts first

Many financial advisers recommend getting rid of larger debts first, as these have higher interest rates and take a bigger chunk of your finances. True, but small balances are not something to be ignored either. Why? Well, as it turns out, paying off small balances can be very motivating and encourages people to pay more attention to their budget and the way they spend their money, as revealed by Harvard Business Review.

Eliminating smaller debts can give you a sense of progress and achievement without feeling frustrated about your finances. So, sure, if you have the money, take care of larger and more financially debilitating debts; if not, eliminating smaller debts can be just as rewarding.

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