Pay off consumer debt

Eliminate consumer debt by making additional principal payments or paying off as much as possible.  If you cannot pay it off right away, make substantial payments to reduce your debts.  Some people would advise you not to pay off your credit cards and close the accounts, because you need to have some type of monthly payments that demonstrate your capacity to pay on time, thus building your credit score.  If you have several credit cards, get rid of them as you pay them off.  Keep only 1 or 2 cards for rainy day emergencies.

By the way, which credit card account should you keep open?  Probably the one you have had for the longest period, since it shows the longest credit history.  Keep that 1 credit card that you have had a long time and have always paid on time.  Pay it way, way down (below 30% of your credit limit) or pay it off each month if you can.

The Scriptures say: “Just as the rich rule the poor, so the borrower is servant to the lender.”  The lesson is that debt is an entrapment because, until your debt is paid off, you are obligated to that lender.

Read more in our book, "Buy Your First Home", http://tinyurl.com/dy2wjx4.