2025 tax changes you need to know now

The new tax bill brings a long list of updates that could shift your refund or paycheck. Student loan borrowers using the SAVE plan could face bigger bills than expected if they pause payments too long. And old “zombie debt” is making a comeback in ways that could derail your progress.

We’re breaking it all down so you know what’s changing, what it means for you, and the moves to make now to stay on track.

Here’s what’s inside:

• How 2025’s biggest tax changes might hit your wallet

• Why your student loan pause could end up costing you thousands

• New rules for zombie debt (and how to keep it buried)

• How a 32-year-old paid off $15k in debt

P.S. If you want to talk through your own finances, you can book a free 1-hour coaching call here ☎️

Tax shake-up in one big bill

Big headlines about taxes usually feel far away — until they hit your paycheck, your refund, or your next big purchase.

The One Big Beautiful Bill, signed into law on July 4th, isn’t just another D.C. headline. It’s a $4 trillion set of changes that could mean more money in your pocket (or less, depending on your situation) starting as soon as next year.

What you can do now:

👉 Run a “what-if” scenario in an online tax calculator to see how the changes hit your income.

👉 Adjust your W-4 now if you expect a smaller refund (or a bigger bill) next year.

👉 If you itemize, review deductions that might disappear, like certain state and local tax write-offs.

👉 Own a small biz or side hustle? Check if lower corporate rates or new pass-through rules could benefit you.

SAVE forbearance: why a ‘pause’ could cost thousands

Using long-term forbearance in the SAVE repayment plan might feel like breathing room, but interest still accrues. And in some cases, your payoff date gets pushed back years. The Department of Education warns that treating forbearance like a “reset button” can end up adding thousands to your balance.

What to do instead:

📝 Make small payments, if possible: Even $25–$50/month can stop interest from compounding.

📝 Use SAVE’s income recertification: If your income has dropped, a recalculated payment could be $0 without triggering interest growth.

📝 Check your interest subsidy: SAVE covers unpaid interest if you make the full required payment, even if it’s $0.

📝 Know your exit plan: Before pausing, set a date to resume payments so the pause doesn’t drag on.

How to not wake the dead (debt edition)

Zombie debt is old debt that’s past the statute of limitations (meaning collectors often can’t sue you for it) but it can still pop up years later. And if you make a payment or admit it’s yours, you could restart the clock, making it legally collectible again.

The tricky part? That expiration date isn’t the same as the seven years it might stay on your credit report, and collectors aren’t required to tell you unless you ask.

The FTC’s new rules mean they have to be clearer about old debts, but it’s still on you to protect your finances.

Before you act:

🧟‍♀️ Ask for it in writing: Get confirmation if the debt is time-barred before you pay or agree to anything.

🧟‍♀️ Check your state’s statute of limitations: It varies by state and debt type.

🧟‍♀️ Don’t rush to pay expired debt: Weigh it against your bigger money goals like paying off active debt or building savings.

🧟‍♀️ Seek neutral advice: A nonprofit credit counselor can help you decide the safest move.

Knowing your debt’s expiration date isn’t about dodging responsibility. It’s about making sure you don’t accidentally bring an old bill back to life.

Money Glow Up: From overwhelmed to in control

At 32, Sarah was juggling debt, inconsistent budgeting, and the stress of never knowing if she could cover the next unexpected expense. Her turnaround didn’t come from a big windfall.

It came from small, repeatable systems: automating savings so it happened without thinking, tracking her spending in one place, and following a debt payoff plan she could stick to without burning out.

Less than a year later, she’s gone from paycheck-to-paycheck anxiety to seeing her emergency fund steadily grow — proof that consistent steps can make a big difference. Read the full breakdown here →

 Worth the Click This Week

💼 Why Gen Z dropouts might be your future boss: Skipping a degree doesn’t mean skipping success. More Gen Zers are trading tuition bills for side hustles, scaling them into full-time businesses (and in some cases, multi-million-dollar companies). Read how the side gig-to-CEO pipeline works →

🧓 What Americans get wrong about Social Security: Many people underestimate how much they’ll get, when they can claim it, or how work affects their benefits. Clearing up these myths now could change how you plan for retirement and help you avoid expensive mistakes later. See the biggest misconceptions →

📋 Budget categories to use right now: Ever wonder where all your money actually goes? This list breaks down every category you might be spending in (from fixed essentials to the fun extras) so you can track it all and make smarter decisions. Browse the full list →

💭 How Americans are really thinking about money: A new survey shows financial decisions aren’t driven by “get rich” goals — they’re fueled by a desire for security, stability, and control. The results might make you rethink your own priorities. See the mindset shift →