We read many reports on the rising household debts of Singaporeans and how it is one of the highest in the region. It does not matter whether household debt is a good indication of our debt problem, there is one thing we know for sure.

The average household debt of Singaporean is at S$55,112 per capita. The household debt is defined as the amount of money that all adults in the household owe financial institutions. It includes consumer debt and mortgage loans.

This means that by a certain age, Singaporeans will find themselves knees deep in debt, be it from their mortgage loan, car loan or their personal loans. Despite numerous coverages on the danger of which, what most articles lack is a proper method to get rid of these debts.

In what order should you be clearing your debts? Should you clear the smallest debt or the biggest one?

Most of …