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I've seen reference a few times recently to maintaining (or adding to) an e-fund while still paying off debt. I don't understand this, honestly.

I guess I should qualify, I'm talking about credit card balances with non-minimal interest rates. Doesn't the available balance on a credit card serve the same function as available cash in a bank account, for emergency purposes? I just couldn't sit by (literally, it would bother me on a daily basis) and pay interest when I had the means to pay some or all of it.

I would allow a decent cash cushion in a checking account, just to prevent getting near a zero balance, but I would drain any savings account to zero until credit cards were paid off.

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