Hit a $50k milestone on my SBA loan repayment 2 years early and it changed how I view debt

Reading about how early payoff actually hurts your credit mix made me stop dumping every extra dollar into principal and start investing the difference instead, anyone else rethink their payoff strategy after a surprise number?

3 comments

3 Comments

nancygrant19d ago

Slap that extra cash into a CD ladder instead.

johnson.jason16d ago

Is your credit score even real if it doesn't randomly punish you for doing the RIGHT thing? I swear mine goes up when I so much as LOOK at my credit card statement but drops twenty points when I make an extra payment. I swear these banks have a dartboard back there with "score adjustments" written on it. And the best part is nobody gives you the ACTUAL rules until AFTER you break them.

the_robin19d ago

That's basically my financial autobiography right there. I paid off my truck a year early and my credit score dropped 40 points because the account closed. Felt like I won the race and got disqualified. Now I just make the minimum and throw the extra into a HYSA while I try to figure out which strategy is actually the "right" one.