Should you use the money to pay off debt?
Our Penny Hoarder philosophy typically would be a resounding Yes!
But should you use your stimulus check to put a dent in your debt?
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Your priority should be surviving and emerging on the other end without wrecking your financial future.
But is debt paydown the best use of your check?
Here are three questions to help you decide.
Dont Miss:
Get Paid $225/Month While Watching Movie Previews
1.
Have You Lost Your Job or Think You Might?
But what if you havent lost your job… yet?
Put yourself in the shoes that you have lost your job, she said.
What are the things youre going to need to cover in terms of monthly expenses that are non-negotiable?
Even if youre spending it on an extra debt payment.
Do You Have an Emergency Fund?
If your job is fairly secure, isnowthe time to put that stimulus check toward credit card debt?
Not if youre living paycheck to paycheck, according to Ward.
Will This Improve My Monthly Cash Flow?
You have a stable job.
You have an emergency fund.Nowcan you use the stimulus check to pay off debt?
But knocking out the debt without dipping into your emergency fund should also improve your financial situation.
Bringing past-due accounts might be your first priority, even if it doesnt wipe out the debt entirely.
Additionally, pulling your accounts out of delinquency can help yourebuild your credit score.
Tiffany Wendeln Connors is a staff writer/editor at The Penny Hoarder.
Readher bio and other work here, then catch her on Twitter @TiffanyWendeln.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
