Pay Down Debt
Get your rainy-day fund topped up and at least one month of emergency savings under your belt (on your way to saving more) before bolstering your retirement savings. Then you can tackle credit card debt.
You’ll save the most by paying off debts in order of highest to lowest interest rate. But eliminating the debt with the smallest balance first—even if it doesn’t carry the highest rate—may give you the momentum you need to stick with the plan.
You may be able to consolidate your debts into a lower-rate credit card or loan. The Amex EveryDay card, for example, offers a 0% rate on balance transfers for 15 months (with a variable rate of 15.24% to 26.24% thereafter) and charges no transfer fee as long as you request the transfer within 60 days of opening the card.
Make sure you can pay off enough of the balance to make the transfer worthwhile during the 0% window. Alternatively, search for a debt-consolidation personal loan. Check with local banks and credit unions as well as online lenders.
