Pay Down the Most Expensive Debt First
As we process applications from law firms, it is not at all unusual to see a firm or partner that has $20,000 of cash in the bank and at the same time is carrying a $20,000 balance on multiple credit cards.
Obviously in a situation like that there is an opportunity to eliminate a lot of interest expense by simply paying off some credit cards rather have them sit out there with $20,000 on them for another year at 18 percent (or even higher).
If you have excess cash at the end of the month, review any outstanding debt you have and consider paying some of it down.
You can learn more about this and other law firm finance topics in my book, How David Beats Goliath – Access to Capital for Contingent-Fee Law Firms.
The above material is excerpted from How David Beats Goliath – Access to Capital for Contingent-Fee Law Firms and is subject to copyright protection © by Michael J. Swanson, all rights reserved.
Photo Credit: Images_of_Money via Flickr
Tags: "Contingent Fee Law Firms", "How David Beats Goliath", "Law Firm Finance", Advocate Capital, Case Expense Financing, credit cards, debt, high interest, how david beats goliath, interest costs, interest expense, interest rates, law practice management, Michael J. Swanson, pay down debt
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