Another MoneyYOYO rule – pay your loan payments on time and in the amount expected.  Being late on loan payments can seriously deteriorate your credit standing.

If you are not comfortable with your debt level on your balance sheet you can make additional loan payments and pay off your loans more quickly.  This means you will have to spend less to afford these additional debt repayments.

What loan do you pay off first?

There are a number of ways that you can approach debt repayment.  The optimal strategy is to pay down the loan with the highest interest rate.  Once that loan is paid off you then pay off the loan with the next highest interest rate.

Depending on how large your loans are, this could take a long time.  Many people like to see more visible progress.

So some people prefer a strategy where you pay off the smallest loan balance.  Then you pay down the next smallest loan.  This strategy gives you a sense of achievement since you are paying off loans and they go away.  Read related articles at these sites:   gkarp@tribune.com, @spendingsmart.

Others use a combination strategy where you pay off the smallest loan and then begin additional payments on the loan with the highest interest rate.

There is no right answer.  The best strategy is the one that gets you to make additional loan payments and meet your goal for debt reduction.

Financial aid:  Use the app Tab to help you split the bill when you’re dining out with friends.

Photo of the day:  My dog, Charlie keeps me focused on cold, windy days.