So you finally paid off that pesky credit card debt. Time to hit the casino! 🎰 That’s right, kings. Rent out a limo bus, grab your closest degenerate friends, and put it all on black. We’re putting the YO back into YOLO. 😎🤘
Don’t do that. Don’t do anything remotely close to that. But now that we’ve got your attention, here’s a list of good decisions. 😇
Here’s Five Fast Facts on what to do after paying off your debt:
- 🔮 Future You - If you’ve been putting off saving for retirement, now’s the perfect time to play catch up. Consider putting the money that went towards those credit card bills towards an IRA or 401(k). If you’re already contributing towards a retirement account, consider increasing those percentages.
- 🚨 S.O.S. - Speaking of savings, how’s that emergency fund looking? Is there enough in there to *truly* cover a major emergency? Pad it up with the extra cash you now have. You can also start up new savings goals, like saving for a nice vacation or a new car.
- 💸 Right Down the Line - If you paid off those personal loans and credit cards, you still may have other debt in the form of student loans, car loans, or a mortgage. To keep the payoff train going, shift gears and work towards tackling those bigger debts next. Increasing your monthly payment even just a little bit higher than the minimum could shave months or years off your repayment schedule.
- 💳 Open Sesame - Once those credit card balances hit zero, you might be tempted to close them out. Not so fast! Closing them completely lowers your overall available debt and could negatively impact your credit score. Consider keeping them open with a simple, recurring charge, like that Amazon Prime subscription. Hint: use autopay!
- 👀 Stay Strong - Seeing your new squeaky clean finances is a beautiful thing. However, it can be really tempting to go back to the same bad habits that got you into debt in the first place. Live within your means and avoid relying on credit cards for purchases unless it’s an emergency.
🔥Bottom line: Facing a mountain of debt that’s too high to climb? Remember: taking even the smallest steps add up to big moves. This year, make a commitment to yourself to zero out those credit card balances once and for all. Speaking of smart money moves, did you know some purchases are better left for *after* the holidays? Check out our list of the best things to buy after the Christmas craziness.
Are you close to becoming debt-free?
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