I know the answer is likely going to be the emergency fund, but saving $1000 in cash seems not doable when I owe ~12,000 in credit card debt. I've never really had a savings account but have done some research that a good first step is just to have 1000 liquid cash for an emergency.
I have no problem making monthly minimum payments, and a couple of my cards are in the 0% introductory phase. But those will expire by the end of summer and then I have a variable APR up to 24% on one (~4k owed) and 13% on the other (~5k on that one). Some of my cards I pay off entirely each month to avoid interest (like my Red card). I'm really just dreading getting charged for interest once my promotional periods are over so should I continue to throw every last bit of money I have as extra each month at my debt? Or should I set some of it aside in an emergency fund?
I'm 23 and have been working full time for about a year now since graduating. For reference, each bi weekly paycheck i take home about 1000 after taxes and withholdings. My actual monthly income after all that is about ~2167. I pay 700 in rent, 150 for a car payment, ~250 for student loans. my other bills (internet, utilities, insurance) come out to ~300 month. And then just groceries, incidentals and my credit card payments is what i use the remaining money (~767) for each month.
TLDR: I need to decide whether to throw extra money at my 12k credit card debt or actually set some aside in a savings account. Thanks for your help!
Submitted March 10, 2019 at 12:30PM by caprese3 https://ift.tt/2CeL235
