Debate: should you pay off credit card debt before building an emergency fund? Or save first?

I was talking to a buddy in Chicago last week who swears by paying off all his credit cards before putting a single dollar into savings. But then my brother did the opposite, saved up $2,000 first, and when his truck broke down he was glad he had cash instead of still owing on cards. I get both sides because interest on credit cards can kill you at 22% or higher, but having no savings to fall back on can just put you right back on the card. I see the logic in saving a small $1,000 emergency fund first then hammering the debt, but idk maybe it's just me. What's your take on which comes first, the debt or the buffer?

3 comments

3 Comments

wood.faith2d ago

My friend Sarah from Des Moines actually did the $1,000 emergency fund first and it saved her. Her roof started leaking six months later and the repair was $900.

victor7792d ago

My own emergency fund is more of a "buy a pizza and hope nothing breaks" type of deal, so she's definitely got me beat there.

mia7002d agoMost Upvoted

Yeah but that's just one person getting lucky with the timing.