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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: E-fund w/ Debt Balance Date:  8/28/2012  8:44 PM
Author:  SeattlePioneer Number:  305829 of 312945

Another consideration for Efund vs debt pay off is worst case survival.

Suppose you have substantial unsecured credit card debt and a job that is likely to disappear and poor prospects for getting another.

It might be a smart move to pay the minimums on the credit cards and to put all available cash into the e-fund.

If you lose your job and can't get another, defaulting on the credit cards and bankruptcy might be a necessary option. Paying down balances on credit cards if you face that kind of situation obviously makes no sense.

What you do depends on where you are. You need to carefully analyze your situation to decide what is reasonable and prudent to do.

Seattle Pioneer
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