DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - How do my fellow onions manage their living expenses

**gennickO** · 09-19-2010, 10:36 PM

Even if you have debt you should save as well. If you don't and an unexpected bill / purchase comes up then you're in even more debt.

It's a commonly held belief, but there are two options:

1) pay off debt and service "surprise" with more debt
2) pay off less debt, save and service "surprise" with savings

You are invariably worse off in situation 2 due to relative interest rates.

09-19-2010, 10:36 PM	#54
gennickO Join Date Oct 2005 Posts 469 Senior Member	Even if you have debt you should save as well. If you don't and an unexpected bill / purchase comes up then you're in even more debt. It's a commonly held belief, but there are two options: 1) pay off debt and service "surprise" with more debt 2) pay off less debt, save and service "surprise" with savings You are invariably worse off in situation 2 due to relative interest rates.
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