Save for an Emergency Fund or Pay Off Debt: Which Should You Prioritize?

I am on step 3 of the FOO, is it okay to save up money like step 1 until you can pay a credit card in full?

Get a 0% credit card for an emergency. Pay off debt as fast as you can.

Even when paying off debt I placed a small amount towards my emergency fund. Like a 9 to 1 ratio. That emergency fund will keep you out of accumulating debt while trying to pay it off.

This must be a cut of an old vid. CC rates are rediculously over 20%!

Any ideas for a sound effect for waving the FOO? The thwap sounds disrespectful

I tackle debt before anything. I don't care if it's consumer debt or a mortgage. Debt is debt to me.

I do both. I just adjust how much I put for emergencies and paying off debt.

You must do both

Why does he spell job?

Save for emergency expenses that can't be charged to a credit card, then focus on paying off the credit card, then save for the emergency expenses that can be charged to a credit card.

For example, don't carry a credit card balance while saving an emergency fund for 3 months of groceries. You can always buy groceries using a credit card.

Pro tip: if you are already in an unhealthy amount of debt just use the debt snowball, because if you really were able to do the avalanche you wouldnt be in this position to begin with.