Guide 3: Debt Elimination & Credit Optimisation - Before-You’re-40
💣 Why Eliminating Debt Is Your Freedom Play
Debt can quietly erode your financial future. Before age 40, eliminating toxic debt and optimising your credit is one of the most liberating things you can do.
💡 20 Actionable Tips for Debt Elimination & Credit Optimisation
1. Make a Debt Inventory
List all debts: balances, interest rates, minimum payments.
2. Use the Avalanche or Snowball Method
Avalanche: pay off highest interest first. Snowball: pay off smallest first. Pick one and commit.
3. Stop Taking on New Consumer Debt
Freeze credit cards, pause big purchases, and commit to zero new balances.
4. Refinance High-Interest Loans
Check for lower interest options or consolidate to reduce burden.
5. Set Up Automatic Payments
Avoid missed payments. Automate all minimums.
6. Make Bi-Weekly Payments
Saves interest and speeds up payoff.
7. Use Side Hustle Income for Debt Only
Direct all side hustle money to kill debt.
8. Negotiate Lower Interest Rates
Call creditors. Ask if they can lower your rate.
9. Cancel Unused Credit Cards Carefully
Close with caution—maintain long-standing accounts to help credit age.
10. Set a Debt-Free Deadline
Make it visual—track it like a countdown.
11. Avoid Buy Now, Pay Later Traps
These can encourage overspending and create payment stress.
12. Avoid Cash Advances
High fees and rates. Treat this as an emergency only.
13. Increase Monthly Debt Payments by 10–20%
Even small increases reduce term significantly.
14. Track Credit Score Monthly
Use apps like ClearScore or Credit Karma.
15. Dispute Credit Report Errors
Check all 3 bureaus and dispute mistakes.
16. Keep Credit Utilisation Under 30%
Lower is better. High utilisation hurts scores.
17. Don’t Close Old Credit Lines Abruptly
This impacts your credit age. Use sparingly.
18. Set Credit Card Alerts
Get notified of due dates, limits, or fraud.
19. Use Credit for Necessities Only
No holidays or luxury items. Needs only.
20. Celebrate Debt-Free Milestones
Reinforce behaviour with small rewards.
🚫 Habits to Eliminate for Better Debt Management
Paying Minimum Only
Ignoring Interest Rates
Using Credit for Non-Essentials
Not Knowing Total Debt Owed
Applying for Too Many Cards
Relying on One Income Source
Not Checking Credit Reports
Impulse Spending With Credit
No Emergency Fund
Avoiding Debt Conversations
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