Please be mindful that when your sole focus is paying down credit card debt, you may end up with tax debt at year end. I have a client who owns a small business and she did a fantastic job paying down her credit card debt last year but she never set aside any cash for taxes. Now she has no credit card debt but a big tax bill due.
I have 2 suggestions if you find yourself in this situation:
- Implement Profit First. This cash flow system makes sure that all your cash needs are met timely. It works!
- Balance paying down debt with setting cash aside for taxes as well as savings. Balance!
If you need help resolving your current debt situation, please reach out, we are happy to help.