Credit card debt increases every day that the debt is outstanding. Interest is calculated on a daily basis; so the longer you take to repay it the more it’s going to cost you. However, if you put all of your liquid cash toward debts, what happens if something comes up for which you need to make a major withdrawal?
Meanwhile, U.S. credit card debt has reached an all time high, as some 40 percent of Americans say they couldn’t cover an unexpected expense of $400.
So, is it better to have an emergency fund or pay off debt?
Dispatches From The Front 