[Aleta]

When we were paying off debt, we did so without too much knowledge. I agree that by using the EF to pay off the debt that you are actually saving in a way because it frees up the same amount in your credit card if you need it. My other pet peeve is that your savings account is also earning interest. You not only are paying the interest on the debt, but you are being taxed at 15% or whatever your income is just for a peace of mind that you already will have by freeing up some of your credit. Most of us forgot that credit used to be used as an emergency not as it is today. I would also suggest that people keep cash on hand at home for many reasons. For one, there are certain things that you can't put on a crefit card. One could be lunch for the kids, a birthday card, children's photos from school. And the last time I checked, you can't pay your car insurance or property taxes with a credit card. Anyway, a small cushion at home would be good and it could be reimbursed at the end of the month.