I split it. Half of extra money went to savings until I had one month of expenses, and half went to the card. It was slower mathematically, but emotionally it kept me calm enough to continue. The best plan is the one you will actually follow.
Should I build an emergency fund first or pay off credit card debt?
#budgeting#credit card debt#emergency fund#money#personal finance
I have about $3,000 in credit card debt and almost no savings. Every finance video says something different. I’m not sure if I should attack the debt first or build a small emergency fund before anything else.
AI Summary
People discuss whether to prioritize a small emergency fund or high-interest credit card debt when money is tight.
Answers & Discussion
For me, paying debt first worked because the interest was making me angry every month. But I still kept a tiny buffer in checking so I was not living at zero. The mistake is choosing one side so aggressively that a small emergency ruins the whole plan.
I would build a small emergency fund first, even if it is only $500 or $1,000. Without that cushion, one car repair or dental bill sends you right back to the credit card. After that, I would attack the credit card hard because the interest is brutal.
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