Thursday, February 03, 2011

Credit Scores & Snowball...

If you look to the right, you will notice that I changed the order of my debt repayment. Going back to Dave Ramsey's book, he said you can change the order if there is a difference in the interest rate but a small difference in the amount owed. I have three Private student loans all within a $1,000 of my Federal student loan. So, I moved those before my federal loan. The Federal loan has a fixed interest rate and it is very important to me that I tackle as much Private variable loan debt before interest rates trend back up.

While I am on this debt repayment journey, my credit scores are a good indication of how I am performing. One of these days, my score will be virtually zero because I will be debt free and I won't have a need for debt.

My scores are awesome!!!

798 - Grade C - TransUnion
810 - Grade B - Equifax
920 - Grade A - Experian


Anonymous said...

Love your blog. I wondered why you put student loan debt (private and federal) before paying off your credit card?

Chitown said...

@ Anon -- Thanks a lot. I am following Dave Ramsey's Total Money Makeover where you snowball your debts from smallest to largest.

On a personal level, it's really important for me to pay off the student loan debt. Half of my loans are Private loans with variable interest rates. When I was in school, the rate was greater than 10% so the sooner I can get those paid before interest rates go back up, the better.

I hope you keep reading. I love when I get comments and questions. =)