Which of the following is the best financial situation?

1) You saved enough for your emergency fund and are paying off your credit card debt.

2) You saved enough for your emergency fund and have $2,358.96 on a credit card at a 3.5% APR.

3) You have not saved enough for your emergency fund and have $538.98 on a credit card at a 9.8% APR.

Question

Carleigh

Business

8 October, 15:35

Which of the following is the best financial situation?

1) You saved enough for your emergency fund and are paying off your credit card debt.

2) You saved enough for your emergency fund and have $2,358.96 on a credit card at a 3.5% APR.

3) You have not saved enough for your emergency fund and have $538.98 on a credit card at a 9.8% APR.

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Answers (1)

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Rice · Answer 1

Out of the choices given, the best financial situation is to have enough money saved for your emergency fund and are paying off your credit card debt. You need to make sure you have your emergency fund saved for and then pay off your debt because if you don't and an emergency arises you are likely going to use the credit card again for the emergency. Paying off credit card debt is important but at the same time, paying off your credit card while not adding funds to it is even more important.