515: How I Paid Off $150K in Debt and the 5 Factors That Boost Your Credit Score

Want to know how to get out of debt for good? It’s not as easy as it sounds! The more you chip away at that number, the harder it becomes to resist frivolous spending. But by fostering a healthy money mindset, building credit, and using credit cards the right way, you can stay out of the red!

Welcome back to the BiggerPockets Money podcast! Ashley is a business owner and rental property investor who is well on her way to financial independence. But only a few years ago, she had racked up tens of thousands of dollars in debt on not one, not two, but THREE occasions. In this episode, she shares why she struggled to break free from the snare of consumer debt and why a drastic mindset shift was needed to climb out of a $150,000 hole.

Ashley also takes a deep dive into credit history and touches on each of the five factors that impact your credit score. Along the way, she offers several personal finance tips that will help you pay off debt and raise your score—such as “tiering down” from credit cards you no longer use, increasing your credit age with one simple hack, and striking the perfect mix of credit accounts. Finally, how important is credit? Is it a trap to avoid or a necessary evil that can help propel you toward financial freedom? Stick around to find out!

In This Episode We Cover

How Ashley paid off over $150,000 of debt in just a few years

Why sixty-five percent of your credit score is within YOUR control

Common methods of paying down debt and which one to use

When to keep your old credit cards open (and when to close them instead!)

The credit card “hack” you can use to make your credit age appear longer

Revolving credit versus installment loans (and why you should have both)

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

Network with Other Investors on The Path to FIRE Through the BiggerPockets Forums

Finance Review Guest Onboarding

Join BiggerPockets for FREE

Mindy on BiggerPockets

Scott on BiggePockets

Listen to All Your Favorite BiggerPockets Podcasts in One Place

Apply to Be a Guest on The Money Show

Podcast Talent Search!

Find an Investor-Friendly Agent in Your Area

Find Investor-Friendly Lenders

How to “Travel Hack” Like a Pro and Get FREE Flights, Hotel Stays, and More! w/Eli Facenda

The Secret to Saving More, Spending Less, and a Perfect Credit Score

How to Pay Off Credit Card Debt FAST ($30K+ in 1 Year!)

How to Pull Yourself Out of Car, Student, or Credit Card Debt

Learn more about your ad choices. Visit megaphone.fm/adchoices