A short advice video by Daniel Rosen giving practical guidance on managing personal debt: prioritize paying down high-interest debts (credit cards, payday loans), reduce interest costs and credit utilization, and avoid late payments which can remain on credit reports for up to seven years and harm credit scores.
If you've got a bunch of debt, focus on paying down the highest interest lines first. Credit cards and payday loans are the usual suspects. This will help reduce the amount of money you're paying in interest, and as your balances decrease, your credit utilization will improve. Boosting your credit score. The most important thing is that you avoid late payments at all costs. I know sometimes crazy things happen and you miss a payment, but you really want to try to avoid this one. Late payments stay on your credit report for up to seven years and they drag down your credit score. Plus, missing a payment puts you at risk for additional fees or higher interest.
