January 14th, 2014
Credit Karma Tips & Resolutions 2014 — Part 2
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To celebrate the new year, we asked the Credit Karma team to share any resolutions they were making or tips they had to get one’s finances into shape in 2014. We got a lot of great responses and decided to share them in a week-long series on Facebook. Now we’re sharing them with you, along with our thoughts!
Sadly, student loans are a harsh reality for many Americans, with nearly 12 million borrowing money to help pay for school each year. Even some people over the age of 60 are still making monthly student loan debt payments, showing that student loan payments can last a lifetime. Kayleigh is smart to want to pay those off… if her situation meets certain conditions:
- Her credit cards and other loans with higher interest rates are already paid off. Student loans typically have lower interest rates than most credit cards, so it’s usually smarter to try paying those off first while maintaining consistent student loan payments. Credit card debt also has a higher impact on your score, so it’s best to pay them off ASAP.
- She has other installment loans or doesn’t mind a slight score decrease. This condition only applies if Kayleigh is planning on paying off her student loans early. When you pay off a student loan early, lenders miss out on interest and your score may take a (slight) hit if this is the only installment loan you have.
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