Mengapa ini penting
Paying off cards with zero savings just reloads the cards at the first flat tire; saving heavily while a card compounds at 24% burns money every month. The sequence exists to stop both failure modes at once.
Langkah-langkahnya
Never skip minimums
Late fees and credit damage outrun every other consideration. Minimums are non-negotiable rent on your past.
Bank the starter cushion first
$500-$1,000 in a separate account. This is what makes the payoff plan durable — emergencies stop interrupting it.
Check the employer match
If your job matches 401(k)-style contributions, contributing enough to capture it is commonly prioritized even alongside debt — an immediate 100% (or 50%) return is hard to beat. Circumstances vary; the match is the reason this step exists.
Attack high-interest debt with everything extra
Anything at roughly 10%+ — credit cards, payday remnants, high-rate personal loans. Every $100 paid at 24% saves $24 a year, guaranteed, tax-free.
Then build the full emergency fund, then invest
Low-rate debt (many mortgages, some student loans) can coexist with saving and investing. That balance is personal — our Roadmap lays out the common order.
Worked example: $250/month available, $3,000 card at 22%
Kesalahan umum
- All-in on the card with $0 saved — one car repair restarts the debt and the discouragement.
- Building six months of savings while a 24% card compounds. The cushion has a size; finish it and move on.
- Counting the retirement match as optional. Unclaimed match is a pay cut.
- Treating 3% student loans like 24% cards. Rate determines urgency.
Apa yang harus dilakukan selanjutnya
Set your starter-cushion autopay tonight, then run the Debt Payoff calculator to point everything after it at the right target.