Reader Questions

Is it Better or Worse to Pay Off My Debt This Year? – Brandi

I have a personal loan from about five years ago. I am paying on time every month. The balance at the beginning of this year was $7,500. I have since paid it down (using a second job and a bonus from work) to a little over 3,000. It is the only debt I have.

Is it better or worse to pay the entire balance off in full this year? Meaning, if I pay it off, I will have only one credit card on my credit report that I am paying in full. Is it better in the long haul to have paid on time every month for the duration of the loan (3 years left) or is it better to pay it all off as soon as possible (as in by the end of this year)?

Brandi




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Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.


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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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