Budget Nerds #127 - Pay Off Debt vs Get A Month Ahead: Which Should You Do First?
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Oct 22, 2025 Ben and Ernie dive into the classic dilemma of whether to pay off debt or get a month ahead on bills. They weigh the pros and cons of both strategies, discussing how aggressive debt payoff might free cash flow but can also lead to stress and vulnerability. Conversely, getting a month ahead reduces anxiety and improves money management, though it could prolong debt elimination. The duo advises listeners to evaluate their own situations and pick a focus, while emphasizing that either choice is a step toward financial progress.
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What Being A Month Ahead Actually Means
- Getting a month ahead means living off last month’s income and fully funding next month’s categories before it starts.
- That concrete visibility into next month’s bills quiets anxiety and changes spending decisions.
Why Aggressive Debt Payoff Feels Compelling
- Aggressive debt payoff reduces interest and can free up cash flow by eliminating minimum payments.
- It feels concrete because you can compute a payoff date, which drives motivation for many people.
Aggressive Paydown Reduces Financial Resilience
- Being aggressive on debt lowers resilience because you send extra cash to lenders immediately instead of holding buffer.
- That leaves little runway to respond to income loss or surprise expenses.