![]() It’s generally a good idea to have six months’ worth of expenses saved in an emergency fund, but this may not be realistic if you are also dealing with debt or otherwise struggling financially. However, doing so will only compound your debt and make the overall problem worse. Without designated savings to pull from during such a crisis, you may feel the need to rely on high-interest credit cards or personal loans to cover sudden costs. A sudden ER visit or a spouse losing their job can throw a significant wrench into your financial plan. Though you may want to pay your debts as soon as possible, it’s important to prioritize emergency savings-even a small amount-that you can use in case an unexpected expense arises. The goal is to find a balance where you can become debt-free and still sleep soundly knowing you have some money socked away. ![]() Luckily, there are winning strategies for tackling debt and savings simultaneously. This situation begs the essential question: Should you save money and put off repaying your debt or should you pay down the debt and wait to begin saving? Debt in any form can be overwhelming, but especially so when it interferes with your ability to build up your savings. ![]()
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