You can think of a credit score as your report card for how effectively you manage your finances, specifically your loans. The myth is that a credit score is a measure of how much debt you have, and that racking up more debt will result in a higher credit score. The truth, however, is . . . .
Focusing on debt payoff can cost you hundreds of thousands of dollars. Debt payoff strategies abound on the internet, and many mainstream financial gurus have built an empire on the common-sense approach to focus your financial efforts first on paying off your debt. The math, however, doesn’t work out in their favor.