My wife and I have about $6,000 in credit card debt. Last year our income was $29,000. This year our income will be over $50,000 thanks to a very unexpected promotion for one of us. We've been trying to put back for emergency funds and debt repayment since we started paying attention to our money and keeping up with r/pf back in September. Never expected our income would go up so quickly. So now, we've gone from having barely enough to get by, to having over a thousand left over to use each month however we want. So now here's my question... We could pay off our debt over the next 6-7 months and be out of debt completely. Why should we put back one month's expenses worth of savings before paying off this debt since it costs us more in interest every month that we don't pay it off? What if we just had a $500 emergency fund or something smaller so we could get out of debt sooner?
EDIT: I left something out. Why have an emergency fund when we're getting out of debt, rather than using the credit card that we paid off somewhat and just going back into the same debt if there were and emergency. I'm asking purely from a mathematical standpoint, not a peace of mind kind of question.
Submitted March 06, 2017 at 10:51AM by mathjockey http://ift.tt/2mXsOtz
