I agree somewhat with the prior poster. Asset bac...

2008-07-18T08:25:00.000-04:00

I agree somewhat with the prior poster. Asset backed debt is okay to hold and continue to pay, particularly if you are able to benefit from tax deductibility of any interest paid, such as a home mortgage and student loans. That being said, short term debt such as credit card loans or personal loans should be paid off as soon as possible. These debt positions are costing you more than you could earn in any investment that is appropriate for an emergency fund. Thus, if you maintain a credit card balance AND a money market position you will have a negative net result. In short, before focusing on saving 3-6 months of expenses, focus on paying down any consumer/short-term debt. This will help to reduce expenses during a period of cash flow shortage AND will help protect your credit rating.

Many people are challenged with creating that emer...

2008-07-14T11:08:00.000-04:00

Many people are challenged with creating that emergency fund. When you are have a mortgage payment, credit card debt, and inflation it's hard to set aside money in that emergency fund.

There is hope. You can create more equity in your home by paying down your mortgage in 1/2 to 1/3 the time. You can also include your credit card debt to get that paid off fast. You can do this with very little changes to your current lifestyle. Don't you want to get out of debt while building your emergency fund?

Warren Buffett was recenlty quoted as saying "I think inflation is really picking up".

Now is the time to get out of debt. To read more on the article, go to http://www.recessionproofmyhome.com/blog/client/index.cfm/190

Comments on Everything Finance: Gotta have cash !

I agree somewhat with the prior poster. Asset bac...

Many people are challenged with creating that emer...