Pay Off an Inverted Pyramid

Pay Off an Inverted Pyramid

When you look at your credit report, do those numbers suddenly become overwhelming? For many, the debt is so much, too much to fathom. Like many of life’s problems, this one is best tackled one small bit at a time. With a bit of effort, you can flip the switch — or the pyramid, so that paying off your debt actually feels good instead of overwhelming.
Start with your smallest debt. Make payments you can afford, and pay attention to how fast it seems to get paid off. While your debt goes down, your credit score goes up. Now move on to the next small debt. By the time you work your way to the largest debts, you’re used to making the payments, and you’ve got a list of paid-off debt behind you.
This part is really important and it can help keep you motivated. As you pay off your small debts, know that your total amount of debt counts against your credit, but so does the number of creditors. You may not think that paying off those small debts counts for much, but your credit score goes up each time you pay off an account.