ANSWERS: 9
  • Id say debt because with good credit you can borrow in emergencies.
  • My personal priority is paying off debt. I have the bank, my parents or family if I ever need emergency money.
  • What kind of debt? If it's credit cards you will be better off paying them off and saving the interest you are charged. In case of an emergency you can always fall back on your credit cards. You always need to have some kind of "emergency fund" even it is does mean using your credit cards. If you can pay off credit cards you will have a LOT more money on interest. However not knowing the debt it would be hard to say what to do.
  • If the Debt isn't costing you anything IE:interest,or threatens your credit score then pay the the minimum they ask you for and keep your money in your savings account were it earns you interest.+3
  • For me, it's paying off debt. I would be much more worried about drowning in debt right now than not having money for emergencies. With the economy and my paycheck what they are, it would be too easy to rack up debt I wouldn't be able to pay off if I don't act on it fast.
  • Everyone who has replied has great answers! The question of what kind of debt came up... In my case it is morgage payments. I have a chance to pay off a second loan, but it would pretty much wipe out everything I have in my savings. It would save me a nice bill every month and the interest is pretty high on it. It makes sense to pay it off, but I am nervous to have nothing in my savings to fall back on. Another thing I have to keep in mind is I am not having a lot of money coming in to save these days. Soooo, I would not be able to save the money again for a long time. Otherwise, I made this question somewhat vague on purpose to get your opinion on debt and savings.... but if you want to reply to my situation, great! Thanks for your advice.
  • Their both important. But savings only in that they prevent future debt. So unless you have a biggy coming up which you could have difficulty financing and an established lo-interest loan, it has to be paying off debt.
  • both are important!!! debt can ruin your credit that you might need to fall back on during a rainy day. debt with high interest (25% a week or you get your legs broken) is always great incentive to pay it off, early if possible. on the other hand, debt to your millionaire father of $1,000 is less urgent. i always suggest that folks keep at least several months of savings for emergencies. now that some banks are closing, i'd probably keep a few dollars at home - enough to get by on with a first aid kit if a nuclear power plant melted down (i lived thru Three Mile Island so i harbor that concern). :)
  • Pay off the debt. If you have an emergency you have credit.

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