[Suzanne Oldham – Ambassador]

I have had the opposite problem. That is, I have NOT built savings and instead opted to use extra cash to pay down debt. While I have succeeded in reducing my debt, I do not have enough savings for unexpected expenses. So I plan to be build a better balance between saving and paying down debt so I can handle unexpected expenses.

[Stacey Daprile – Ambassador]

Kayla, I feel that it is always important to have your emergency savings held sacred. At 0% interest the debt is not costing you anything, and if you are earning interest on the savings you are money ahead. If the debt is costing more than you can earn, then I’d say pay off the debt.

[Antoinette Minor – Ambassador]

I agree with the other ladies BUT I also know what peace of mind feels like. Do you have a ton of time left to pay off the furniture? If so, I see what you mean but do you think you can hold out a little longer to take advantage of the 0%? Either way I think you’re in good standing. Debt without interest is a win and peace of mind is a win!

[Sum180 Lead Coach]

Throwing a little financial theory into the conversation. Here is the “best practice” decision waterfall list in priority order:

1. Use all extra $$ to pay off high interest debt, where high is anything over 5%; then
2. Split the use of all extra $$ by 50% to finishing the debt payoff of lower interest debts (0-5%) and 50% build up of emergency funds. (exclude your mortgage unless it is high interest or under water)

[Kayla Buell – Ambassador]

Thanks for all the advice, everyone!