Debt Payment Strategy

Turn Debt Into Your Credit Building Tool

Not all debt is created equal, and how you pay it off can dramatically impact your credit score. This lesson reveals the most effective strategies for paying down debt while maximizing your credit score improvement.

The Two Powerhouse Methods

• Debt Avalanche: Pay minimums on all debts, then attack the highest interest rate first
• Debt Snowball: Pay minimums on all debts, then eliminate the smallest balance first

Credit Utilization Mastery

Learn the 30% rule and why it matters, plus advanced strategies like:

• The 10% sweet spot for excellent credit
• Per-card vs. overall utilization - which matters more?
• Timing your payments for maximum score impact
• How to use multiple payments per month strategically

Beyond the Basics

We'll cover advanced techniques like balance transfer strategies, the impact of closing accounts, and how to negotiate with creditors for better terms. You'll also learn when debt consolidation makes sense and when it could hurt your score.

Your Custom Plan

By the end, you'll have a personalized debt payment strategy that aligns with your credit goals and financial situation.