From the article: Should I Pay Off Credit Card Debt Before Starting An Emergency Fund?
When it comes to managing your own money, do you think that people should pay off credit card debt or save money in emergency funds? Share your opinion for other readers to see! What Do You Think?
pay off credit card
- Speaking for myself personally I would pay off my credit card and then start and emergency fund,made sense for me personally
- —Guest Sandra
both
- I plan to do both while still working. I will be laid off very soon and I do not wish to have credit card debt hanging on me. I do already have an emergency fund and I plan to work seasonal work while still looking for full time work.....It does not make sense to pay 20-24% while collecting unemployment or working 20 hours or less!
- —Guest AMber
do both save and pay down debt
- save for and emergency but also pay as much on debt as possible, as your saving grows pay a little more on the credit cards debt, i agree with super dave i trie paying down debt and ended up using the credit cards again so i begin to do both since october of 2009 i have not used my credit card, while paying more than the minimal balance i have manage to pay down the majority of the debt and will be paid off by summer of 2010 in the procee of doing both i only had $400.00 dollars in the bank and now i have more than $30,000.00 in emergency funding, just know the same practice does not work for everyone take a look at your debt, income, and situation because no two situations are the same.
- —Guest glorib
Yes Pay off Credit Cards
- Yes pay off the credit cards. Pay any amount extra per month you can and soon you will have more to save. Its nice to have some money in the bank but 20 % plus interest going to your credit card needs 24% interest from the bank to you to break even if you count in inflation. Better to pay off all high interest debt before trying to save. I know it can be tough but now days I only use my credit card IF I can pay it off each month. I took me 5 years to get here but it was 5 years well worth it. Once the credit card balance was zero I was able to save $25,000.00 dollars in 4 years.
- —Guest Pay off Credit
Super Dave
- The other guy that responded is wrong. According to Dave Ramsey and other money dudes, get at least $1,000 in an emergency fund. This makes sense beyond the pyschological. If you have an emergency and no money set aside, you will undoubtedly use your credit card. In doing so, you will never free yourself from the card. Dave ain't always right, but in this case, having that little stash can go a long way.
- —Guest Super Dave
Yes!
- It makes no sense to save anything if you are paying 30% on your credit card debt!
- —Guest George
