Episode 117: Should I Pay off Debt or Build an Emergency Fund?

When funds are tight, it is hard to know whether to pay down your debts or build your savings. Dawn discusses the pros and cons of each to help you decide where to focus your efforts first.

2 responses to “Episode 117: Should I Pay off Debt or Build an Emergency Fund?

  1. I have 8,500 in debt and my husband has a student loan of 36,000. We have 9000+ in savings outside of retirement accouts. We are retired. My husband would like to pay off the cc debt (it is interesting free at this time),but I want to wait until after we figure our taxes. I am sure we will owe. We also need a decent bed and we can get one for a very good price in March. So is it better to use our saving to pay debt or for upcoming expenses?

    1. Hi Judy! If your credit card debt is currently at zero interest, I’d wait to see how the taxes come out and get the bed you need with your savings. Depending on how much is then left, you can decide to leave it in savings and find other ways to pay down your debts OR use some savings to pay down debt. There is no perfect answer, unfortunately. 🙂 Good luck!

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