Improve Your Credit Now

Through whatever circumstance you’ve arrived here to improve your credit, know this. It can be done. Once you’ve identified what needs to be paid off you now need a strategy to pay off those pesky debts. Before we talk about how to pay off the debts, I want to talk about mindset.

Some are under the impression that the debt they have is insurmountable. If that is truly the case, then this advice will not help. Bankruptcy may be in your future. For many of us, we can overcome and improve our credit score. The most important aspect of credit cleanup is not paying off your debt. Yes, you heard right. The first thing is to get your mind right. Whatever that takes! Once you’ve gotten the noggin straight then let’s talk money.

As it turns out, these debts are paid off by money. Go figure. So, there are a few ways to have the money to pay off your debt. You can either cut back on lifestyle expenditures or possibly make more money.

If you need to make more money, there are a ton of choices for you. From a three-month tech certificate to a four-year degree. You can do it!

Now we can finally talk about a strategy to pay off your debt.

The Snowball Payoff Method

The snowball payoff method is a way of paying off your debt by paying off the smallest amount first to the largest amount last. That is it! It’s not magical and it’s staggeringly simple. Here’s a quick example. Let’s pretend you have a credit card in which you own $200.00. You have another credit card which you owe $1,500.00.

The Snowball Payoff Method recommends paying off the smaller amount first. In this case it’s the $200.00 credit card. After you have paid off the smaller amount then pay the next smallest amount debt until you reach, your biggest debt that you owe.

The snowball payoff method has many benefits

  1. You can pay off small debts early in the process and maybe even before they get too big.
  2. It forces you to create a budget and stick with it.
  3. You can make your payments more manageable to fit your budget needs.

Listen, once you begin with this technique, you’ll also feel a sense of accomplishment. Even though the snowball payoff method is basic common sense you’d be surprised how many want to pay-off the largest debt first. Maybe they figure it’s more important.

In the eyes of your credit report, the quicker you have your debts paid the better. Paying off the smallest to the largest debt will get you to a better credit score.

As I’ve said many times, this is painfully boring information. However, it’s also incredibly critical to your financial future.

Do what you must. Work out, chant, sing, walk around like a crazy person, but take care of this. We believe in you. Now go out and begin this credit journey.

If you want more information, please reach out.