Pay off credit cards before student loans
Unless you have private student loans with abnormally high interest rates, you're most likely paying the most interest on any credit card debt you're carrying. This is especially prominent in your early to mid twenties because more often than not your credit score may not be the highest, which in turn produces the highest interest rates on credit card debt! Focus on paying off first and then tackle those.
If you have federal loans, take advantage of the automatic forbearance that's in effect through at least February, 2021, due to COVID-19. Put your loan payments toward credit cards and private student loans that are still accruing interest. And don't forget, although the chances are slim, there is still some talk to cancel $10,000 worth of student debt which makes the importance of prioritizing credit card debt even more obvious.
Looking to refinance your student loans? Look no further, Purefy has you covered! Purefy’s free tools let you compare private student loans to find your lowest interest rate and the right repayment terms for your unique financial situation
You're young, you started making money, begin enjoying it while still being responsible and saving for all things life throws our way. Saving for retirement is most impactful in your 20's, saving for a home requires preparation, and saving for emergencies is key to avoiding taking on debt when when accidents happen. There's a lot to take in, but small actions compounded with time will leave you well prepared to build a life with little to no financial mistakes. Begin today, no contributions are considered too small!