[Carlz]

Debt free first. Then you can start building your own wealth instead of the banks.

You can’t fill a bucket that has a hole in the bottom.

[Sparkle]

Look at your interest rates. If your debt has higher interest rates, tackle that first.

However, I like to have savings as well, can you do both?

75% of whatever you are budgeting to pay off debt and 25% to put to savings?

[Trish]

Have a minimum emergency fund, start with $1000 then split between paying debt and emergency.

If you don’t rebuild something for emergency you will have to borrow for them, thus creating more debt

[Becky]

Pay off debts after rebuilding emergency fund. You’ve got this.

[Susan]

1st go thru budget w/ fine toothed comb. Get rid of all un needed expenses or spending.

No, the difference between a want & need. Pay down debt.

(After building up a $1000 emergency fund) sell any thing you can to get rid of all your debt.

Build up a bigger Emergeny fund.

Never go into debt again

[Jacqulyn]

Get an emergency fund back in place the. Snowball the debt

[Kym]

Save 1000 then pay off all debt except the house, scorched earth no life. Then huge emergency fund

[Brandy]

How much is the APR on your debt? If it’s more than you’ll make saving it, pay it off first!

[Brenda]

If you follow Dave Ramsey’s Baby Steps you would first establish a $1000 emergency fund, then using the snowball method start paying off debt from smallest to largest balance.

Don’t worry about what debt has a higher interest rate.

And make sure you’re using a good monthly budgeting system.

I love Ramsey’s Everydollar.

I’ve been working his programs for many years.

Was just able to replace my HVAC system for about $10k with cash, no problem.

[Lynn]

Have you tried getting a 0% transfer credit card to get rid of interest?

That way every thing you pay is going towards your debt.

Then save some and pay some toward your debt.

I absolutely hate paying interest, so I will always suggest this.

[Taralyn]

You have to save to stay debt free, so don’t put it all toward debt. As a certified financial coach, I recommend the Thirds Method.

If you have any money leftover at the end of the month- or receive extra money from a bonus, taxes, tips, or whatever- split into thirds.

Put a third into your savings to build your financial foundation, a third as an extra payment to the debt you’re targeting- pay minimum to all other debts- and take a third to do whatever you want.

See a movie, get a massage, buy a book, or a meal out as a reward for sticking to your plan and making progress on your goals.

Then do it again the following month.

[Hillary]

Rebuild your emergency fund/savings first. I used to try to pay off debt first, but it seemed every time I got it paid off I had an emergency expense with nothing saved to pay for it.

I always ended up back in debt.

Now that I have the emergency fund I’ve been working on paying down debt and I haven’t needed to touch the fund.

Funny how it happens.

[Kimberly]

Save $1000 for an emergency and then get debt free and after you’re debt free, start rebuilding savings

[Karen]

I would not buy stock at this point. I would either pay down debt or add to an emergency fund or split between the two.

Also, I never invest in individual stocks anymore.

It’s too risky.

I invest in mutual funds where your portfolio is diversified which reduces risk, and I do index funds which outperform managed funds on average.

[Tammy]

Will the interest/earnings on your savings/investments be more than the interest you’re paying on debt?

I would aggressively pay down consumer debt and then have more of money to save.

I paid off my highest rate debts first and just had my low interest mortgage.

I pay off my credit card charges every month now, so pay no interest.

[Author]

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