Don’t Delay Your Emergency Fund To Pay Off Credit Card Debt Instead
Many people believe that if you’re paying off your credit card debt then you won’t have the means and time to start an emergency fund and vice versa. But that’s not true, as both strategies can coexist if you approach them carefully.
What you need to know is that even saving as little as $20 a month for your emergency fund is enough to get the ball rolling. In the meantime, start by paying off the card with the lowest balance. This early strategy will ensure that you won’t feel overwhelmed.
It’s also called a snowball strategy. Once you’re done with your lowest balance, start tackling the second lowest and so on and so forth. By the time you reach the truly ‘scary’ credit card debt, you’ll already be used to saving money and paying off at the same time.
Just remember, it’s the credit card debt interest that you should be really worried about. By getting rid of it sooner, you’ll end up with more spending money which you can reliably move to your savings account.
