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Originally Posted by cicy33
I guess my confusion is if you have no savings cuz you are concentrating on a card, and then you have a problem and you put it on the card aren't you sorta like chasing your tail??? I think that it would be better to save a little into savings, just enough to take care of a real emergency, don't touch it and then concetrate on the cards. That way you don't max the card again.
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The hope is that you don't have an emergency where you have to put it on the card, but we all know how emergencies don't like to follow our well laid plans. This is the way I look at it:
Say you have $1000 in your emergency savings account and you have $5000 in credit card debt. You know you are probably going to need to use that $1000, but not sure exactly when. Until you need to use it, you can leave it in your savings account and earn 3% or put it against your credit card and not pay 18% (or whatever your credit card rate is)
Now if an emergency does come along and you need to place it on your credit card, then you should pay it back to the credit card asap (just as you would replenish your emergency savings account if you had to dip into it).