This post discusses the pros and cons of paying off debt or building emergency fund first.
Debt is a ball and chain that can affect your quality of life for years to come. The question should not be whether you should pay off debt but how much should be paid off each month.
Paying off debt or building an emergency fund is something most people have difficulty prioritizing.
The answer depends on each person’s unique situation. The ideal situation is to have a robust emergency fund and no debt, but being in debt can be a sign of being financially irresponsible.
Everyone has their own opinion on this topic and it is not as easy as it sounds.
Some people think that it is better to pay off debt first because they are incurring interest rates on the interest rate whereas if they were to save money in their emergency fund.
Should you pay off debt or build an emergency fund first? This is a common question that many people will find themselves asking.
It is important to understand that there are benefits and drawbacks to each option. Paying off debt comes with the benefit of having more money, less stress, and more money for emergencies.