We began the list of of important personal finance tips to follow last week and will now continue the conversation. While it may not seem important, taking the necessary steps now will be extremely beneficial to you down the road. This list will help you get your personal finances in order and help you plan for the future.

3) Eliminate credit card debt.

Credit card debt comes with an extremely high interest rate, with the average rate around 13%, which means that these purchases that you have not paid off can end up getting extremely expensive, really fast. Eliminating credit card debt will help your finances by increasing the amount of money you are keeping in your pocket and improve your credit score. When you pay off your credit card bill with an interest rate of 13%, you are essentially paying yourself 14% guaranteed and tax free. That is an incredible investment that you can make with returns you will realize right away.

4) Start tracking your credit score.

When you come to the point in your life when you begin making large purchases, such as a car or home, you will more than likely need to take out a loan to finance the purchase. Your credit score is what the banks will use to essentially determine how risky of an investment you are when they loan you the money. The worse your credit score is the more you will pay in interest payments. That is why it is very important to begin tracking your credit score and working to improve this score. By actively checking your credit score you will ensure that nobody has stolen your identity and taken out a loan in your name. You can learn more about credit scores and reports here.