1. Tackle Credit Card Debt
It’s easy to think that delaying debt repayment until you’re older and making more money is a good idea, but this strategy rarely pans out. Because as you make more, your expenses usually increase too.
“Instead of renting, you’re now going to buy a house, or you’re combining finances with a partner, or you decide to have a family,” Taylor explains. “All that extra money that seemed like it would make things so much easier suddenly isn’t there.”
This is why now is the time to work on breaking the credit-card-debt cycle for good—but make sure you’re approaching this goal strategically. A common mistake to avoid? Making giant repayments when you haven’t properly budgeted for them.
It may seem like a good idea, but you risk running out of cash and then having to withdraw it from your savings account, or worse, running up your credit card bill again just to stay afloat. Instead, take a more measured approach, and be realistic about how much you can afford to repay at once—then stick to the plan.