Hello there - I read your post with curiosity and could not figure out who you were responding too, but wanted to reply myself.
Since the topic of this thread is How To Prioritize Emergency Funds, Savings and Paying Off Debt, using a credit card to pay bills is the antithesis of getting out of debt. 😄 If the goal is to get out of debt and not be a slave to the credit card company, etc., paying for stuff with cash is the way to go.
It is better to save up for the nice trip. To develop the necessary discipline involved. Human beings being human, the facts speak for themselves with the volume of personal debt people carry around like a weight around their neck, NOT having paid them off. People don't pay off their credit cards by and large. I see and hear it all the time with my coaching clients. In fact, often times that is why they end up becoming a client. They need help and accountability to stop using credit cards and understand why they use them at all.
So, just sayin' .... pay cash! Forget the credit cards, and enjoy that nice vacation too that was saved up for. 😄
I don't think you should save at all while you are paying down debt. That takes away money from it that could be used to pay it down faster.
Get the $1,000 emergency fund, refinance if you need to then put rest of the money towards debt then once you are done, save for a 3 to 6 months emergency fund. This should be enough money to pay your bills for 3 to 6 months.
That sounds so easy I have no food no money both kids are 21 and they still wanna take ever,thing from me I have nothing I have to shop lift to eat how crazy is I need a stimlzs what he'll ,w
I've found the best approach to getting out of the red into the black is keep a notebook log label something like Household Finances " and record on a daily basis of all income coming in/out. List the must pay "monthly items " like rent and all Household expenses and family expenses that are a mandatory to be paid on time every month. Keep a daily record of all your accounts and Credit scores from all of your financial institutions. Plus have a strict financial discipline on what you're spending that money on. I've been following this for two years now and increased my credit lines with a credit score inching upwards, and I've gotten rid of my long term debt too. Believe me, doing this and seeing on paper on where all of your hard earned income is going is a eye opener showing where its all going to...