this is the ramsie call of the day part of the ramsay network let's go to the big apple

new york city new york brian joins us there brian how can we help yes how you doing thank you for

taking my call sure Sure. Yeah.

Should I take a consolidated loan or a personal loan to pay off credit card debt in efforts to improve my credit score and build credit history?

I'll give you a short answer.

No.

And I'll tell you why, Brian, you know, when people go to shift their debt around, there's one time that we actually say that it's not necessarily a terrible idea. And it's if you have, you know, a larger debt, but you're able to get a loan that's less interest rate and you're in the works to pay it off. Then sometimes sometimes we're like you know what it makes sense and you can do that because your behavior was

already that I'm going to be paying this debt off but just hearing your question and the

motivation why to do that I would say no because our goal with our with our money at least we teach on this show, is to be completely

debt-free and not to be at the mercy even of a credit score. And so we even teach to the point

that you become debt-free. And within around 12 to 18 months, after you become completely

debt-free, that credit score starts to actually go down to undetermined,

and you end up not really even having a credit score.

So that's something that we talk about on the show.

So in order to improve a credit score

is not a reason we would do a financial move

or what I would suggest that you do.

So what kind of debt is it in general?

Is it all credit cards?

Yeah, it's all credit card. It's only around 7,500. I don't have a lot of credit history, so I thought paying back a loan would help show some

type of credit history. Yeah, and it would, but again, my goal for you then, my goal for you is to still just pay this off and not to

work your money and your financial plan around the credit score because you can still today

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