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Pay Off Debt – Improve Your Credit Score

Want to reduce debt in the new year?

The average millennial carries nearly $5,000 in credit card debt. So, the decision to pay it down has a significant financial impact. You avoid the cost of high interest that accrues when carrying a balance on your card month after month. Reducing your credit utilization rate boosts your credit score. It’s a win-win! So take these steps:

First, make a budget. It enables you to know where your money’s going so you can pay down debt and avoid it in the future. Then save at least $1,000. It sounds crazy, but you have to save your way out of debt. An emergency account gives you margin to avoid using your credit card in the future. Finally, make a plan. The debt snowball method works by having you organize debts from smallest to largest. Make minimum payments on all the cards but put extra cash towards paying off the smallest. Once that’s paid, you roll over what you were paying on it and apply it towards the next debt until it’s paid, and so on. This plan has psychological advantages. The debt avalanche method works by having you organize debts from highest interest rate to lowest. Like the snowball method, you make minimum payments on all cards and put extra cash towards the one with the highest rate. Once it’s paid, you roll over the payment to the next, and so on. This plan saves you the most money. Debt is bondage that borrows from tomorrow to pay for today. So resolve to pay down your debt. You’ll find freedom and increase your credit score.

And if you’re drowning in credit card debt, I recommend Christian Credit Counselors. They can create a debt management plan for you in the new year. For more information call the Crown Helpline: 800-722-1976 or visit online at