 TITLE: Best Ways for Millennials to Pay Off Debt CONTENT: Prioritize Your Debts and Power Them Down\n-----------------------------------------\nOne strategy for paying off debt is to list your credit card and loan accounts by their interest rates, with the highest rate at the top. For example, let's say you have $1,000 to commit to debt payoff, and these are your accounts:\nAccount\nBalance\nInterest Rate\nMinimum payment\nPower payment\nCredit card 1\n$2,000\n29%\n$60\n$350\nCredit card 2\n$5,000\n21.99%\n$150\n$150\nPersonal loan\n$3,000\n12%\n$150\n$150\nStudent loan\n$20,000\n6.2%\n$350\n$350\nTotal $30,000\nTotal $710\nTotal $1,000\nSend the maximum amount to the account at the top of your list and the minimum to the others. Once the first reaches a zero balance, apply its payment to the next account on your list. In the scenario above, the balance on credit card 1 would be eliminated in seven months. Then you'd add its payment to credit card 2, sending $500 instead of $150. When that's done, the personal loan will get $650 until it's deleted. Eventually you'll send the entire $1,000 to your student loan until it, too, is paid off. It's a simple and efficient system—as long as you don't start charging on your credit cards again once they're paid off.\nBut what about the debts in collection? Unsatisfied collection accounts look bad on your credit reports and negatively impact credit scores because they're a clear indication that you didn't pay your bills. It's best to pay all these accounts in full, as soon as you can. A possible exception: If the accounts are nearly 7 years old, they will soon be deleted from your credit report. While some people just wait until those accounts drop off their file, just be aware that the statute of limitations for being sued can extend past that time frame, depending on the state you live in. Check with your state attorney general's office to learn the laws for your area. END