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""I suggest that anyone who is holding a true e-fund (as opposed to savings for know, upcoming expenes) and who has any debt is in fact borrowing to maintain his/her e-fund. To be consitent with the no borrow policy, all debt should be paid first.""

Jafo, you nailed down the reason I posed the question. If someone asked "Should a person have an efund when paying off debt" the answers would have generally been 'yes.' Now look at all the responses on this thread which seem to contradict that.

If one has an efund and has debt, he is essentially borrowing that efund. I agree with those who would instead use an untapped open line of credit as the emergency backup, while throwing their money at debt.

Interesting take.

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