Pay Off Debt As Quickly As Possible

If you have a lot of debt, your credit score will suffer.  Paying down your debts to a minimum will assist elevate your credit score.  For example, if you have a $1500 limit on your credit card and you regularly carry a balance of $1200, you will be a less attractive credit risk to lenders than someone who has the same credit card but carries a smaller balance of $100 or so.  If you are serious about improving your credit score, then start with the largest debt you have and begin paying it down so that you are using a less sizeable percentage of your credit total.

In general, try to make certain that you use no more than 50% of your credit.  That means that if your credit card has a limit of $6000, make sure that you pay it down to at least $3000 and work at carrying no larger balance.  If possible, abolish the debt even more.  If you can pay down or pay off the credit card in full each month, that is even better. What counts here is what percentage of your total credit limit you are using – the lower the better.

You wan’t to get rid of that nasty debt as soon as possible to help yourself to financial freedom.

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