Equifax

Finance Blog

Stay financially savvy with the Equifax Advisor.

Sign up for our FREE Monthly Email Newsletter

 

Thank you for signing up for the FREE Equifax monthly newsletter

In addition to keeping in the financial know, you may be interested in checking your credit score and report.

Understand your credit. Help protect your identity.

Equifax Complete™ Premier Plan

  • Know What May Influence Your Credit Score and Be Alerted of Changes
    Credit score monitoring with custom alerts
    Important Disclosure: The Equifax credit score and 3-Bureau credit scores are based on an Equifax credit score model and are not the same scores used by 3rd parties to assess your creditworthiness.¹
  • Help Protect Your Identity
    Automatic fraud alerts encourages lenders to take extra steps to verify your identity²
  • Lock Your Credit
    The ability to lock and unlock your Equifax Credit Report³
Save 75% your first 30 days with the purchase of Equifax Complete™ Premier

$4.95 for the first 30 days, then $19.95 per month thereafter. You may cancel at any time; however, we do not provide partial month refunds.4

¹The credit scores provided under the offers described here use the Equifax Credit Score, which is a proprietary credit model developed by Equifax. The Equifax Credit Score and 3-Bureau scores are each based on the Equifax Credit Score model, but calculated using the information in your Equifax, Experian and TransUnion credit files. The Equifax Credit Score is intended for your own educational use. It is also commercially available to third parties along with numerous other credit scores and models in the marketplace. Please keep in mind third parties are likely to use a different score when evaluating your creditworthiness. Also, third parties will take into consideration items other than your credit score or information found in your credit file, such as your income.

²The Automatic Fraud Alert feature is made available to consumers by Equifax Information Services LLC and fulfilled on its behalf by Equifax Consumer Services LLC.

³Equifax Credit Report Control™ is only available while you have a current subscription to Equifax Complete Premier. Locking your credit file with Equifax Credit Report Control will prevent access to your Equifax credit file by certain third parties, such as credit grantors or other companies and agencies. Credit Report Control will not prevent access to your credit file at any other credit reporting agency, and will not prevent access to your Equifax credit file by companies like Equifax Personal Solutions which provide you with access to your credit report or credit score or monitor your credit file; Federal, state and local government agencies; companies reviewing your application for employment; companies that have a current account or relationship with you, and collection agencies acting on behalf of those whom you owe; for fraud detection and prevention purposes; and companies that wish to make pre-approved offers of credit or insurance to you. To opt out of such pre-approved offers, visit www.optoutprescreen.com/.

4We will require you to provide your payment information when you sign up and we will immediately charge your card $4.95. After that, we will charge the card $19.95 for each month you continue your subscription. You may cancel at any time; however, we do not provide partial month refunds.

Equifax® is a registered trademark and Equifax Complete™ Premier is a trademark of Equifax, Inc. © 2014, Equifax Inc., Atlanta, Georgia. All rights reserved.

Four Things to Consider When Paying Off Debt

Written by Steve Repak on June 23, 2014 in Credit  |   5 comments

Let’s say you have credit card balances, student loan debt, a car payment, and a mortgage. Which do you pay down first? The answer depends on your priorities. While it would be great to pay off all of your debt simultaneously, that’s not possible for…

four-things-to-consider-when-paying-off-debtLet’s say you have credit card balances, student loan debt, a car payment, and a mortgage. Which do you pay down first? The answer depends on your priorities. While it would be great to pay off all of your debt simultaneously, that’s not possible for most people.

Consider these pros and cons as you work to prioritize your debt:

Paying off the smallest debt first

1. Paying off your smallest debt first can give you a sense of accomplishment and may keep you on track, especially if you are trying to pay off multiple debts. If you feel overwhelmed by all of your debt, those little victories can provide you with the much-needed encouragement to remain committed to your goals.

2. Paying off the smallest debt first may not be the best plan if your priority is to pay less in interest and thereby pay off your debt as quickly as possible. For example, if the credit card with the largest balance is also the one that charges you the highest interest rate, you will be paying more interest and it will take you longer to pay off your debt.

Paying off your credit card debt before your mortgage

3. Some professionals recommend not paying off your house if you have other debt. This is because you may get a tax benefit if your mortgage interest is deductible. For example, if your marginal tax rate is 25 percent and your home loan is 6 percent, your net interest rate is 4.5 percent, or 75 percent of 6 percent. If you are paying a higher interest rate on other debt, it may make more sense to put your cash towards that more expensive debt before your mortgage.

4. If you pay off other debt and that causes you to default on your mortgage, you could risk losing your home. Would you rather take a ding on your credit report because you were unable to pay a credit card bill or lose your house? You might want to pay off your house before paying off your unsecured debt—even though you might lose the interest deduction on your taxes.

Advice is seldom one size fits all, but some professionals feel strongly that their way is the best way. The reality, though, is that each person has a different personality, different goals, and different circumstances. To decide what’s best for you, weigh the pros and cons of each option and then make a decision based on what is most important to you.

Steve Repak, CFP®, is the author of Dollars & Uncommon Sense: Basic Training for Your Money.

5 comments

  1. Anonymous says:

    What do you think about car notes? For example should I use my equity line on my house to pay off my car?

    • Steve Repak says:

      That is a great question. Just as with all decisions you have to weigh the benefits versus the risk. Using a home equity could make sense especially if the rate is lower than you car note. As an added benefit, the interest might be deductible. As with any tax question, you should ask a qualified tax professional. So what about the risk? If you did use your equity line to pay off your car and you are unable to make the equity line payment, your house could be foreclosed on.

  2. Tara says:

    Great points to consider!

  3. Sam says:

    Which type of student loan should be paid off first? Subsidized or Unsubsidized?

  4. Michelle says:

    I agree, I am interested to know what about car loans. When should these be paid off? Should it be credit card, then car loan, and then mortgage?


Leave a Comment


Name :


Commenting guidelines

We welcome your interest and participation on this forum, but be aware that comments will be published at Equifax's sole discretion. Please don't use this blog to submit questions or concerns about your Equifax credit report or raise customer service issues. Instead, you should contact Equifax directly for all such matters and any attempts to do so in this forum will be promptly re-directed.

Some other factors to consider when commenting:
  1. Registration and privacy. While no registration is required to visit our forum, participants wishing to post a message must register by creating an account. All personal information provided by forum members incident to registration is governed by our Terms of Use and Privacy Policy.
  2. All comments are anonymous. We'll delete your name, e-mail address, and any other identifying information, including details about your investments.
  3. We can't post or respond to every comment - As much as we'd like to, we can't post every comment, nor can we guarantee that we will respond to each individual message. All questions or comments about your Equifax credit report or similar customer service issues should be handled by contacting Equifax directly.
  4. Don't offer specific legal, tax or financial advice. All of the materials on this Site are for information, education, and noncommercial purposes only and this forum is not intended as a means of expressing views or ideas regarding any specific legal, tax, or investment advice. While offering general rules of thumb is both permitted and encouraged, recommending specific ideas or strategies regarding investments, taxes, and related matters is prohibited.
  5. Credit Repair. This blog is not intended as a venue for the discussion or exchange of ideas regarding credit repair or other strategies intended to assist visitors and community members improve or otherwise modify their credit histories, ratings or scores.
  6. Stay on topic. Your comment should be concise and pertain to the specific post in question.
  7. Be respectful of the community. The use of profanity, offensive language, spam, and personal attacks will not be tolerated and egregious or repeat offenders will be banned from future participation. We encourage disagreement and healthy debate, but please refrain from personal attacks on our WordPresss and contributors.
  8. Finally: Participation in this forum may be terminated by Equifax immediately and without notice for failure to comply with any guidelines or Terms of Use. As such, you should familiarize yourself with all pertinent requirements prior to submitting any response through the blog or otherwise. All opinions expressed in this forum are solely those of the individual submitting the comment, and don't necessarily represent the views of Equifax or its management.

Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.


Credit Archive