Who’s got better bread: Texas Roadhouse or Olive Garden? 🤔🥖 Don’t forget about Outback. Now we’re in the mood for a Bloomin’ Onion! 🧅
Paying down debt is on many to-do lists, but when should you save it for later? We’ve got five reasons to put it on the back burner. 💵
Here’s Five Fast Facts on when to put a pause on paying off debt:
- 🏡 Needy Necessities - First thing’s first: you gotta take care of your basic needs before you throw money at anything else. If you’re struggling to afford food, housing, or utilities, focus on that. Once you’re in a more stable financial state, then you can think about putting some extra cash towards debt payments.
- 🚨 S.O.S. - Life comes at ya fast, especially those curve balls that come out of left field. Losing your job, a death in the family, or a medical emergency can all be huge strains on your paycheck. If you’re hit with an unexpected situation that drains your funds, take a time out from paying down debt and focus on the here and now.
- 💰 In Case of Emergency - If you don’t have a solid emergency fund, anything extra in your paycheck should go towards building that up. A good rule of thumb is to have at least a month’s worth of expenses saved. Three months is even better. When that’s all taken care of, tackle your debt.
- 📑 Tax Attack - Uncle Sam does NOT play around! If you owe the IRS, take care of that debt ASAP. If you don’t, the IRS can freeze your accounts, seize your property, or garnish your wages. Interest also accrues on unpaid back taxes and it can negatively impact your credit score. Pay off the tax man before the credit card man.
- 📉 How Low Can You Go? - Low interest rate debt is hard to come by these days. However, if you have it, you can afford to take it easy. Work on taking out high interest rate debt before anything else, as it punches you the hardest in the long run. Anything around 3% and under is considered low interest.
🔥Bottom line: Debt feels like a gloomy cloud raining on your parade. Chin up, buttercup! Take everything step by step, day by day. A fresh start over, a different hand to play. If you can name that TV theme song, it’s probably time to include retinol in your skincare routine. Wanna know what’s hiding in your utility bill? Read this article.
Are you close to paying off your debt?
Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!
Btw, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!
