Jenn wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.
Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty. If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help.
“Dear Steve,
I have been out of college for 3 years. I have 26,000 student loan debt with low interest rates 1-4%, 6000 in credt card debt with 9% interest.
I’m struggleing with if its better to have a savings accont or to pay down my debt. i currently have a savings account, but I dont know if I should take that money and use towards my credit card/student loan debt or continue to save in case something happens with my job. Any Opinons?
Jenn”
The Answer:
Dear Jenn,
I think your question is best answered by the Q&A and comment from Ashlee from her question. Read Ashlee’s question here.
Bottom line, the savings account is critical. Pay the minimums on your debts until you save up at least $1,000 in a savings account. Nobody ever went broke from saving.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.