Question for the Money Doctors

Question submitted on Feb 22, 2011.

Question

I 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?

Answer

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 :)

Good luck!

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