We all love to make money but very few of us give ample consideration to how our expenses are structured. One area that seems to be very problematic for people is how their personal debts are structured. Many of us are homeowners and think nothing of refinancing our home mortgages when interest rates plummet. But the same philosophy can be extended to other debts or financial obligations that we may be carrying such as auto, student and personal loans. Credit cards are one of the most dangerous types of short-term borrowing we can engage in since the interest rate on the credit cards is so high. It is often in excess of 19% on an annual basis. Since you pay for debt with after tax dollars, paying down your debt has the same effect as realizing a guaranteed after-tax return on your investments of between 5 and 23% (assumed interest charges on loans and credit cards). This could have a dramatic impact on your family’s finances. As a rule, paying down debt is one of the first things you should do as part of a well constructed financial plan starting first with the highest interest rate debt, usually credit card debt.