So some personal financial gurus tell you to pay off debt till you are “debt free”!  That sounds great! But the idea is, you want to have paid off your debt, past tense, when bad times hit. Now that we’re getting hit with bad times, today, this minute, do you really want to go there?

What if you’ve been paying off debt by taking an extra job, putting an extra $500 a month toward that credit card – and you lose your primary job, your main income?

What would you give to have your hands on that cash you paid debt with?

With times like these, putting more away for emergencies BEFORE you pay down your balances is probably a smarter choice. When times get better, for sure pay down debt.  But if you don’t have much cash set aside, pay the minimums on your debts to stay current, and put the rest in a good high-interest savings account you can get your hands on as soon as you need it.

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