Learned a weird trick from a loan officer in Cleveland

I was at a credit union in Cleveland last year, refinancing a rental property. The loan officer told me to pay off my smallest debt first, not the highest interest one, which goes against everything I thought. He said it's more about keeping your debt to income ratio looking clean on paper than saving on interest for complex loans. He showed me my file and how one paid off card dropped my DTI by 3 points instantly. Has anyone else had a lender give them advice that seemed backwards but worked out?

2 comments

2 Comments

lisaf3815d ago

Idk but that kind of backwards advice always ends up being right somehow.

jakel3615d ago

Right, "backwards advice always ends up being right" is such a weird truth. Like when someone says "just relax and it'll happen" for literally anything from dating to finding your keys. It feels like garbage advice in the moment but then you try it and suddenly things just click. Same with "sleep on it" before making a big decision. Feels lazy but 9 times out of 10 your brain figures it out while you're not thinking. It's like our brains are just wired to reject the simple answer first even though that's usually the one that works.