Bell asked in Business & FinanceCredit · 1 month ago

What approach should I take to pay down debt?

I have an income that allows me to pay down my debt.  I have a balance of $250,000 for a Home Equity Account, $18,000 in credit cards, and $85,000 in a mortgage.  I can make more than the minimum payment for all, but want to know which balance I should reduce the fastest to increase my credit score.  What do you suggest?

3 Answers

  • Anonymous
    1 month ago

    Pay whatever has the highest rate first. Excess I mean.  I would not pay any attention to your credit score. It makes no difference in the long run and do you really need more credit?  How is it you owe $335k total on your house but only have an $85k mortgage?

  • 1 month ago

    I would say pay the credit cards.

  • 1 month ago

    I suggest ignoring your credit score entirely and focusing on the highest interest rate debt first. 

    As fate would have it, ignoring your credit score and paying down debt will improve your credit score.  

Still have questions? Get your answers by asking now.