Should I pay off credit cards or save money first?
Build a small emergency fund first ($1,000-$2,000), then aggressively pay off credit cards. Credit card APRs (20-29%) far exceed any savings rate, so paying down the debt is mathematically the best 'investment' you can make. After cards are paid off, build a full 3-6 month emergency fund.
More context
Build a small emergency fund first ($1,000-$2,000), then aggressively pay off credit cards. Credit card APRs (20-29%) far exceed any savings rate, so paying down the debt is mathematically the best 'investment' you can make. After cards are paid off, build a full 3-6 month emergency fund. The exact answer depends on your specific situation — the numbers above are a strong starting point, but the right next step is to plug in your actual figures.
For a deeper analysis, use one of the related tools below — they take your specific income, debt, location, and goals as inputs and produce a tailored answer.