If you have credit cards, loans and other debt, one of the smartest ways to pay them off is to concentrate on paying the highest interest rate debt first. If you have a credit card with a 14.99% interest rate and a loan with a 3% rate, you’ll be paying far more in interest on your credit card, even if the outstanding balance is far lower. While you continue to service your existing debt, aim to pay extra on your credit card. Once this is cleared, you will have far more funds to put towards your next highest interest debt account.