When you hear the phrase “in case of emergency,” what comes to mind? Many individuals think of safety drills, stored nonperishables, first aid kits and calling 911. Having an emergency stash of cash might not be on your “in case of emergency” list, but it should be one of your biggest financial priorities.
Summer isn’t for saving; it’s the season for spending. At least, that’s the message that many Americans relay when banks trot out their annual spending surveys.
When you’re focused on getting out of debt, most folks get caught up in the process and don’t think beyond achieving that goal. If this happened to you – don’t worry! It’s happened to almost everyone who’s successfully eliminated large credit card debts. But the fact is, if you are consistent and committed to paying off your debt, it will happen. So then what? If you don’t have a plan for what to do with your money once your debt is paid off, it can be all too easy to start a cycle of over-spending that will leave you where you started. Here are several things you need to do once your credit card debt is paid off.
The decision to get yourself out of debt is a life changer, if you are willing to make the necessary commitment that goes with that.
Getting out of debt involves more than just paying off a few credit cards. It means changing spending habits; learning to how to budget; knowing who and how much you owe; prioritizing debts; creating emergency and retirement funds; and knowing where to find help when you get off track.