More Bread

This is my quest to get MORE BREAD (ie money), get rid of debt and other random things in my life.

Monday, September 18, 2006

Savings vs. Debt

Should I start an emergency fund or pay down some credit card debt? This is something I keep going back and forth about. I closed a checking account at US bank today because I recently got married and are combining our accounts at WAMU. They have free checking and a way better savings rate (as of this post the rate is now 5%). I have about $6k in credit card debt and am bringing over about $600. Do I use that $600 to start an emergency fund, or do I pay off part of the debt? At 5% interest I'll make about $30 in interest on the $600but pay considerably more in interest on the debt over the year. I like the idea of having an emergency fund in case something happens, but is the comfort in knowing that money is there worth holding my credit card debt a little longer??? 

Have any thoughts?


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