Question for the Money Doctors
Question submitted on Feb 22, 2011.
QuestionI have about 3500 in credit card debt that I hope to have paid off in a year.I am not putting any extra money into an emergency account. Should I continue to put all the extra money I can towards my credit card debt or should I be putting money into an emergency fund?
Great question. Ideally, you should have no less than 3 months of monthly living expenses in your emergency fund. However, right now, if you have at least $1000, continue to intensely payoff your credit cards until your debt is gone - just make sure you stop using them too :)
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