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Paying Down Debt to Improve Credit

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By Chandler Sullivan
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Posted in: Credit
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Everyone will come across debt at some point in their lives. Whether it is student loans, credit cards, car loans, mortgage loans, etc… the list of debt is endless at any given moment.

When you have a lot of debt it restricts your disposable income and ability to save or spend. Having debt can be very overwhelming… especially if you have a low credit score. Paying down your debt can help your financial future by improving your credit and decreasing your stress.

How to Pay Down Debt

It is important to consider a savings plan or budget when it comes to starting to pay down debt. What can you afford to pay off every month while not sacrificing your necessities? The easiest way to set up this plan is to pay down the smallest balance and highest interest rates first.

  • Pay off smallest balance first: It will be easier to eliminate your overall debt if you prioritize smaller debts first. Of course, don’t neglect payment on your larger debts but give the smaller debts the most attention. Once the smallest debt is paid, focus on the next smallest debt.
  • Pay off highest interest rate: Making minimum payments on lower interest rates will free up your ability to make larger payments on higher interest rates.

Additional Sources

https://marinecu.com/blog/blog-pay-off-debt/
https://marinecu.com/bad-credit-home-loans/

  • Chandler Sullivan

    Chandler Sullivan

    Chandler Sullivan is a copywriter specializing in a wide range of topics including personal finance, psychology, childcare, education, and scientific research. She has skills in writing and research with experience in digital marketing, sales, and social media. She graduated from UW-La Crosse with a B.S. degree in Psychology and a minor in Professional Writing in La Crosse, WI. She has worked for companies based in the Milwaukee, WI area and the Chicago, IL area doing SEO and copywriting.

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