What To Do Once You Are Debt-Free

April 5th, 2021 by
what to do when debt free

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You have paid off all of your bills, loans, and credit cards! So what do you do now? 

Here are a few tips to keep you free from debt, according to MyFico.

Keep Your Credit Cards

This might seem counterintuitive to keep the cards that you have paid off; however, if you have small amounts on them (less than 30% of your total limit), it actually helps your credit score. Your credit utilization ratio will be lower, which will keep your credit score higher.

Keep Up the Good Work

If you have managed to curb your spending so far, keep at it. You don’t want to fall into bad habits again and find yourself back to where you started. Stick to budgets and only take on purchases that you can realistically afford.

Boost Your Retirement Savings

You may have cut back on contributing to your savings for your retirement to pay for other expenses. Now is the time to reinstate saving for your future and start saving in your retirement fund again.

Create an Emergency Fund

You never know what’s around the corner and creating an Emergency Fund of approximately six months will cushion any troubles that may come along in the future.

Whatever you choose to do to give yourself a brighter debt-free future, be sure to congratulate yourself on managing your money.

 


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