Hi all,

I've seen articles that recommend having 3-6 months' worth of living expenses saved in cash. But what if I have a large credit card debt at 12% interest? Right now, I've got about 1.75 months of living expenses saved up, earning 4%. It would take me another year to get to 3 months' worth.

If I left the savings intact, I could pay off the CCs in 33 months. If I kept, oh, $1000 or something for quick cash emergencies and applied the rest of the savings toward the CC debt right now, I would be paid off in 27 mths, and would save about $1100 in interest. In this case, were a serious emergency to occur, I could always get the cash back off of the credit cards.

Any thoughts or experiences here?

Thanks.

* I am 'WorkingOnIt' :-)*