So ive been working on my debts some i havent paid off yet but are no longer on my credit report but they where on my credit report when i sent in my equip do i pay off the credit report items first or the higher debt items that arent on the report anymore?
Personally, I wouldn’t let the clearance dictate my payoff strategy. If your credit report items have a low enough balance that you can easily pay them off, then go for the lowest hanging fruit. Otherwise, choose the strategy that works best for you. I would always start with the highest, compounded interest (like credit cards) first and work my way down. Ex:
1 Credit card 3.5% (compounded daily)
2 Credit card 4.5% (compounded monthly)
3 Personal loan 8% (simple interest)
4 student loan 5.5% (simple interest)
1 Like