In order to free yourself from credit card debt, one of your beginning steps should be to set up an emergency fund. It makes perfect sense to do so.
If you don’t have this fund to access if you need to, your only option is to use your credit cards which clearly results in more debt… likely at a high interest rate and likely tacked onto an already ridiculously high balance. Stop it…stop it now!
Your first goal in eradicating debt is to establish this fund. Begin with something, anything. Shoot for $500-$1000 initially. Once this has been established it’s time to start your debt snowball.
Setting up a high yield savings account to house your emergency fund is what the experts say to do. You can find an account here and decide what will work best for you.
I set one up with Sallie Mae (partly because I have a sister named Sally and my middle name is Mae…thought it was a good omen). So far, so good. The people I’ve spoken with are incredibly friendly and helpful and the online transactions are super easy to complete (and it’s secure).
“Money without brains is always dangerous.” –Napoleon Hill
Make this your priority so you can start working on getting rid of your debt. Really take a look at where you’re spending your money and cut back where you can so you can make this happen.
I’m happy to report our emergency fund is fully funded. You’d be amazed at how much relief that gives me.
Helpful Links:
Establishing An Emergency Fund -Mint.com
How And Why To Start An Emergency Fund
Go Beyond An Emergency Fund by Establishing An Emergency Fund Plan
