Wondering how to use that $1,200 check from the government? Here's some guidance.
While that might represent a big chunk of your stimulus check, having the money set aside can help you avoid a cycle of high-interest debt, Schulz notes.
Make sure your emergency fund is liquid and carries no risk. In other words, don’t sock away the money in the stock market. Instead, your savings account is an ideal place to stash some of the cash until you need it. Take some time to list your debts and your interest rates, which could help you decide which cards to pay down first., the snowball and the avalanche. The first prioritizes small wins by paying down cards with the lowest debt, while the avalanche tackles cards with the highest rates. Determining which method to use will depend on whether you’re motivated by quick wins or tackling big objectives.
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