re: Emergency fund opinions

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4. Overkill (i.e., use some of it on other things such as paying down debt)

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Debt isn't necessarily bad if the rate is low enough. Occasionally I will hear of someone who doesn't pay down credit card debt for fear of not having a sufficient emergency fund. This is a bad idea.

Always pay down the credit card to the maximum unless you have one of those special "teaser" rates. If you need money suddenly you can always charge it to the card, but in the meantime pay it down ASAP.

But if you are only paying, say, 2% interest there is no hurry. That's the rate of inflation and there is no financial need to pay it down unless you just feel like it.