← Real-World Finances 101: Smart Money Tips for Recent Grads

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By Janell Hazelwood | Published July 27, 2012 | Full size is 620 × 480 pixels

Take care of loans: The higher the rate on the loan, the faster you want to pay it off. “It’s called debt stacking,” Boyd says. “That’s when you line up your bills by interest rate, not by balance.” You would make the minimum payment to all of your bills except for the one that has the highest interest rate.” The quicker you pay it off, the better, but don’t pay it off in spite of saving, Boyd says. You want some equity because, as we’ve seen in this job market, you could lose your job, Boyd adds. "What you don’t want to do is have no equity or no savings, and have less debt. That doesn’t help you if you lose your job. It’s a careful balance."

Take care of loans: The higher the rate on the loan, the faster you want…