Debt Payoff Strategy to Improve Your Credit Score Fast!


Whatever you do, DO NOT rush to pay a
debt collector! I’m going to tell you why. It is tax time and you’re probably
thinking, “What is the fastest way to improve my credit by paying off debts?”
Which debts do I pay off first? Which ones are going to have the most positive
impact to my credit score? And why I need to invest my tax return in my credit!
First off, if you’re getting a tax return it’s a great time to start thinking
about getting out of debt, and lowering the debt that you have. I’m going to show
you step by step move by move what you need to do to make sure that you’re
paying off the right debts to increase your credit.
The first thing we’ll focus on is credit card debt, the balance that you hold on
your credit card account is actually worth 30 percent of your overall credit
score. It’s a huge, significant factor. We want to focus on paying off credit
card debt first! How are we going to do that? What I recommend you do is that
you figure out what interest rate you’re paying on each individual credit card
and then you want to focus on paying off the highest interest rate credit cards
first. Now I don’t necessarily want you to pay old bad or soggy debt that has been
reporting on your credit forever. I want you to focus on paying your open active
credit card accounts! The next thing that we’ll look at is personal loans, auto
loans and mortgages. If you’re paying a high interest rate, like double digits, on any
kind of loan, a personal loan, an auto loan or a mortgage, it is smart to pay as
much in the beginning of the loan as possible. The reason is because
the way that loans are amortized, a majority of the interest is paid in the
beginning of the loan, so if you pay a significant chunk in the beginning
portion of the loan, it’s going to save you a lot on interest. Next, let’s talk about
debt collections, I never recommend that you pay a debt collector. Unless 1.
you’re at risk of getting sued or 2. It is a debt collector for a federally
backed student loan. The reason you want to pay back the debt collector for the
student loan is because student loans never go away. So when you start paying
the debt collector, what’s going to happen is your student loan is going to
come out of default, so it’s a good thing to pay those collections. Paying a
collections does not guarantee a credit score increase and it doesn’t guarantee
that the account is going to be removed from your credit report, so it’s really
not a smart thing to do. Ideally, you want to focus your money on your high
interest credit cards and loans. If you don’t have any open active credit cards
then you need to watch our video on the “3 simple steps for building credit
fast” I’ll put a link for that below. What kind of debt do you have? Are you
celebrating paying something off? Let us know in the comments, we’d love to hear
from you! If you found this video to be helpful please like it, subscribe to our
channel and leave us a positive comment below! I read all of the comments and I
love you guys so keep up the great work and I will see you on the next video. Please Subscribe

9 comments on “Debt Payoff Strategy to Improve Your Credit Score Fast!”

  1. HAWAIIAN STYLE MIKEY says:

    β€β€β€πŸ‘ŠπŸ‘Š

  2. CreditCEO says:

    If you are looking to build or rebuild your credit, please watch our recent video, 3 simple steps to build credit fast: https://youtu.be/YbEUJiKErf8

  3. Michael R says:

    Trying to figure out how to pay off a shady apartment debt 😞

  4. John Plaisival says:

    Great video you are amazing 5 stars

  5. Luis Colon says:

    Do you have email address where i can contact you about an issue im having with a law office debt collector

  6. Kenneth Castellanos says:

    I been watching your videos since yesterday and it help me alot, todays video hit the spots and some information i need it, i dont have an active credit card but i have old debt from some credit cards but i dont exactly what to do?

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  9. Outlaw84 says:

    It’s so hard to give a solid answer on this… I had a collection account….paid it off, then my score went up 13 points just from that.

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