Work to 30% of your debt

Who else besides me have been reading personal finance books?

You haven’t?? Well I think you should if this is the year you are finally going to dig out of that debt hole you have dug. By reading multiple books you can decide which strategy is right for you.

“But I can’t” you say. YES I say.  A strategy that I am finding is working well is setting a particular goal and it is all based on your credit rating. This came about after reading Happy Go Money by Melissa Leong. I only wish I had this book in my 20’s! She discusses everything money and it is EVERYTHING I have needed.

We all know the lower the balance on your credit card the higher the credit score. Apparently only carrying 30% of your total credit limit increases your credit score. The higher your credit score the better. This is where I have developed my new debt payment strategy.

If you can get your balance to 30% of your credit limit you can pay off your debt.

This is the most manageable, tangible, attainable goal that I have found to actually pay down debt. If you have a credit limit of $1,000 you need to maintain a balance of $300. Maintain…… Better yet you can try to convince yourself that this is your credit limit and pay off that debt! Takes a lot of will power but it is possible.

Let’s do this!

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