Keep Paying off Debt or Add to Savings?
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Keep Paying off Debt or Add to Savings?
| Tue, 07-22-2008 - 8:33am |
Hi Ladies!
We keep hearing talk and have already seen some hard financial times coming. Just watching the news will scare you to death!
My hubby and I have been paying off the debt for about a year and have probably 2 years to go (yes, we were stupid in our younger days!). We have about $1500 saved as an emergency fund and I keep wondering if we should have a little more in there? I know I don't want to be in debt, especially in rough times; but if we get hit, I don't want to not have enough money in our savings either.
I'm curious what all you are doing? Are you saving a little extra to prepare for tighter financial times or are you just plugging away at the ever dreaded debt?
Thanks in advance for all of the great advice:)

My personal opinion is to tackle the debt.
Hi Tashia,
I think what you do depends on personal comfort levels. I myself have $1000 in an Efund and the rest is going to debt. I am comfortable with that because I have a secure job (gov't) and I am in Canada and we really haven't been hit by the economic woes that the US has. If you are comfortable with $1500 then keep paying off debt. If you are concerned about job stability or potential emergency, then maybe you should put some of the debt money toward savings.
Could you split up what you have been sending so you are still adding to an efund (maybe 100 a month) and still paying down debt?
Just a thought!
Bex -
"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."
Bex -
Thanks Bex! That's good advice. I think I would feel more comfortable with $2000 in savings, so then I can add $100 a month until we get that amount. I work from home with not much income and my DH has been slow at his work so not much overtime. I think his job is pretty secure, but without the overtime, there is no extra to put towards the debt.
Thanks again!
Tashia
Garage Sale Secrets
Tashia
Garage Sale Secrets<
I try to put 1% a way a month for us that is about 30 dollars