US EditionShould you handle debt or build an emergency fund first?
- Over 33% of Americans had to draw from their emergency savings within the last year, according to Bankrate's 2025 Annual Emergency Savings Report.
- Rising living costs from recent inflation and tariffs, combined with credit card APRs around 20%, contribute to the urgency of deciding whether to build savings or reduce debt first.
- Financial experts recommend first creating an emergency fund to cover one month's expenses and then focusing on paying down high-interest debts, especially if the debt-to-income ratio exceeds 36%.
- Bankrate notes that prioritizing debt payoff is often more beneficial when dealing with short-term, high-interest debts, with consolidation or balance transfers potentially lowering interest and freeing cash for savings.
- Alternating between saving and debt repayment allows steady progress toward financial stability, minimizing stress while building savings and reducing costly debt simultaneously.
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The Fort Morgan Times+12 Reposted by 12 other sources
Should you handle debt or build an emergency fund first?
By Whitney Nielsen, Bankrate.com There’s a reason financial advisers keep recommending you save money for emergencies. More than one in three Americans needed to tap their emergency savings in the past year, according to Bankrate’s 2025 Annual Emergency Savings Report. But when you’re juggling debt, putting money toward savings can feel overwhelming. Many feel paying down their balances would be more beneficial than adding money to savings. Rela…
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Total News Sources13
Leaning Left1Leaning Right1Center9Last UpdatedBias Distribution82% Center
Bias Distribution
- 82% of the sources are Center
82% Center
C 82%
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