Get to know your debt

If you’re like most people, you carry some kind of debt balance from month to month – credit cards, a mortgage, student loan, auto loan, etc. At Primerica, we understand how overwhelming debt can feel sometimes, but with the right game plan in place, and a little discipline, we can show you how you CAN pay it down.

Before we get into the “how,” it’s important to understand what kind of debt you’re dealing with.

Secured or Unsecured: What’s the Difference?
All debt falls into two categories: secured and unsecured and are considered fixed (equal monthly payments like a mortgage or installment loan) or revolving (minimum payment changes based on total debt amount like a credit card).

Secured – This type is asset-based where the asset (i.e. your home or car) is used for collateral. Your mortgage or an automobile loan are examples of a secured debt.

Unsecured – Unsecured debt isn’t tied to any asset. Credit cards, medical debt, student loans, personal loans, etc. fall into this category.

While some debt – like your mortgage or student loans – can be considered “good” in the sense that your home or education will increase in value, paying them off quickly can put you in a much better financial position sooner rather than later!

The Power of Compound Interest

Compound interest can be a powerful force! When it’s working for you through an investment strategy, the interest your money earns can add up to a BIG benefit. However, the flip side of that is when it’s applied to a loan or credit card account, it can potentially add up to hundreds or even thousands of dollars over time, on top of the original purchase price!

Learn more about The Power of Compound Interest.


An easy strategy you can use right now uses the concept of Debt Stacking to focus on paying down one debt at a time while continuing minimum payments on the rest. As you pay debts off, you add those now freed-up funds to the minimum payment of the next in line.