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

BiggerPockets Money Podcast

BiggerPockets

Investing, Education, Business

4.6 • 2.9K Ratings

🗓️ 29 March 2024

⏱️ 47 minutes

🔗️ Recording | iTunes | RSS

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Summary

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

Transcript

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0:00.0	Today we're talking about credit card debt. Credit card debt accounts for a whopping 1.1 trillion dollars here in the US.
0:09.6	That's trillion with a T. So I'm sure many of our listeners, like most Americans, are using
0:16.3	credit but maybe aren't using it to their advantage. That's right Mindy, a lot of folks are
0:21.4	misusing credit. So on today's episode, we're going to talk to Ash all about money, who has a massive Tik-Toc platform teaching folks how to get out of credit card debt and increase their credit scores.
0:31.6	So stick around, because today's episode
0:33.7	is meant to serve as a comprehensive foundational
0:36.8	crash course on the factors that make up your credit score.
0:40.2	We want you to come out of this episode understanding the concrete steps to take so that you are in the habit of practicing good credit hygiene.
0:50.0	Hello Hello Hello and welcome to the Bigger Pocket's Money Podcast.
0:53.2	My name is Mindy Jensen and today I'd like to give some credit to my co-host Scott Trench.
0:59.4	On a scale of 1 to 10, Scott, you're at 850.
1:03.0	Thanks, Mindy.
1:03.8	I'll give you a high score for that particular intro.
1:06.8	All right, we're here to make financial independence less scary.
1:09.0	Let's just for somebody else to introduce you
1:11.0	to every money story and every part of personal finance because we truly
1:16.0	believe financial freedom is attainable for everyone no matter when or where
1:19.9	you're starting or how much debt you have.
1:21.7	Ashley from Ash all about money.
1:24.4	Welcome to the BiggerPockets Money Podcast. I am so excited to talk to you today.
1:28.4	Thank you. I'm so excited to be here. So Ashley you started making videos about debt and credit because you were on a journey to get out of debt.
1:36.6	First, thank you so very much because this journey can feel like such a solitary endeavor and you know oh I'm in debt I'm embarrassed by it I'm
	...

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