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Should I use my emergency savings to pay off credit card debt?
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Throughout your adult life, you’ve likely been reminded of the importance of saving money. As a result, you’ve worked hard to build up a sizable emergency fund, one you can fall back on when times get tough.
On the other hand, you may have compiled quite a bit of credit card debt, too. After all, the vast majority of adult Americans have at least one credit card in their wallets. As you make your credit card payments each month, watching interest take its toll, you may start to wonder if it’s more important to have a meaningful emergency fund or if it’s more important to pay off your debts. Below, we’ll discuss some considerations to account for when making this determination.
Learn about your debt relief options now.
Should I use my emergency savings to pay off credit card debt?
“If you’re considering whether or not to use your emergency fund to pay off credit card debt, you need to apply a solid analysis to the amount of money you have in your emergency fund and how much credit card debt you have,” explains Krisstin Petersmarck, investment advisor representative at Bridgeriver Advisors in Bloomfield Hills, Michigan.
“You do not want to completely deplete your emergency fund,” Petersmarck says. It is important to maintain at least three months of expenses in your savings account, she says.
For example, say you have about $3,500 in monthly expenses. In this case, you should have at least $10,500 in your savings account at all times. So, if you have $20,000 in your savings account, using $9,500 of it to pay off your high interest credit card debt may be a wise decision.
Find out how fast you can get out of debt today.
Effective ways to pay off credit card debt faster
Even if you don’t have excess funds in your savings account, you’re not doomed to be in credit card debt forever. There are several things you can do to pay your debt off faster. Some of the most effective ways to eliminate credit card debt are listed below.
Debt relief services
Before getting too worried, research all your potential options. A debt relief service may help.
These services typically negotiate with your lenders on your behalf to reduce your interest, balance, or both. They also set up payment plans that are designed to be effective and affordable. Consider reaching out to debt relief experts to speed up your credit card debt payoff process.
Debt consolidation loans
Take steps to “consolidate your debts – meaning you can combine multiple high interest balances into one with a lower rate,” says Shachar Bialick, CEO and founder of Curve, a company that simplifies credit card rewards management. “This way, you can pay off your debt faster without increasing payment amounts, and you’re not tracking multiple balances across several accounts.”
So, if you’re a well-qualified borrower, it may be advantageous for you to use a new loan to pay off your current credit card debt. There are a couple of popular ways to do so:
- A personal debt consolidation loan: These loans typically come with lower interest rates than credit cards and a fixed payment plan. As such, when you take advantage of them, you’ll likely save money on interest and pay your debts off faster.
- A home equity loan: Home equity loans typically come with competitive interest rates because they’re backed by your home. Using these loans to consolidate your debts could lead to significant savings on interest and a lower overall minimum payment.
- Balance transfer credit cards: Balance transfer credit cards typically come with a zero or low promotional interest rate for a short period of time. You could use these accounts to make a dent in your balance during the promotional period. But if you do, make sure you have a plan for when the promotional interest rate expires as any remaining debt will typically be charged a high standard credit card interest rate.
Debt avalanche or debt snowball payment plans
The debt avalanche and debt snowball payment plans have worked for a countless number of borrowers and may work well for you. Both payment plans start with you choosing a fixed monthly amount of money to pay to all of your creditors combined each month – even if that’s no more than your minimum monthly payments as they stand today. Once you decide what that payment will be, here’s how you follow these payment plans:
- Debt avalanche: Make minimum payments to all but your highest interest rate debt. Send all extra money to your highest interest rate credit card until it has a zero balance. Once you pay it off, focus all excess funds in your fixed payment to your next highest interest rate. Continue doing so until all of your credit card debt is paid off. Focusing on your highest interest debt can lead to significant long-run savings.
- Debt snowball: Focus your excess funds on your smallest debt. When you pay that debt off, move on to the next smallest and continue until all of your credit cards are paid off. The small wins in the beginning can motivate you to stay on the path to payoff for the long run.
The bottom line
It may or may not be wise to use your emergency fund to pay off your credit card debt. That depends on how much money you have set aside for emergencies and how much credit card debt you owe. Nonetheless, even if you don’t have any excess in your emergency fund, you don’t have to live with costly credit card debt forever. Take advantage of one of the options above to eliminate your credit card debt faster. Get started here now.
CBS News
A week before Texas mom Alyssa Burkett’s murder, the killer received a text: “I hope you handle it”
After Alyssa Burkett was murdered, detectives quickly learned that the prime suspect was the father of her child, Andrew Beard. But as the investigation unfolded, they would find out that Beard wasn’t the only one involved in the murder plot.
Take a look inside the investigation.
Oct. 2, 2020 | 9 a.m.
Carrollton Police Department
Shortly after 24-year-old Alyssa Burkett pulled into her parking space at work in Carrollton, Texas, a man with a gun shot her in the head through her car window and fled.
Carrollton Police Department
Burkett survived the gun blast, got out of her car and tried to get help. Her bloody hand left a print on the office window.
The assailant saw Burkett running and chased after her. He stabbed and slashed Alyssa 44 times and left the scene in his black SUV.
Lizatte Bowers/Alyssa Burkett, Facebook
When Burkett’s mother, Teresa Collard, arrived at the scene, she immediately gave detectives a name: Andrew Beard. Beard was the father of Burkett’s 1-year-old child, Willow.
Oct. 2, 2020 | 12 p.m.
Carrollton Police Department
Hours after the murder, police officers stopped Beard in his white Ford F-150 pickup truck. His fiancée, Holly Elkins, and baby Willow were with him. Beard was told he could leave the scene, but he couldn’t return home. Officers also seized his pickup truck.
Oct. 2, 2020 | 9 p.m.
Carrollton Police Department
Later that night, police searched Beard’s home and found a GPS tracker battery and charging stations that matched a tracking device detectives discovered under Burkett’s car earlier that day.
Carrollton Police Department
Investigators also uncovered what they believed to be an unregistered gun silencer.
Oct. 3, 2020 | 12 p.m.
Carrollton Police Department
The next day, detectives searched Beard’s white F-150 pickup truck and found a backpack. Inside, they uncovered two bottles of dark brown makeup, and a pair of men’s hiking boots that had been cut into pieces and were soaking in bleach.
Oct. 3, 2020
Carrollton Police Department
Later that night, police located that black Ford SUV the assailant drove to the scene. It was found abandoned less than a mile from Beard’s house.
Carrolton Police Department
When detectives searched the SUV, they found a fake beard smeared with dark brown makeup.
Oct. 5, 2020
Carrolton Police Department
When Beard learned there was a warrant for his arrest, he turned himself in to the Carrollton Police Department. He was charged with murder.
Oct. 6, 2020
Beard’s fiancée, Holly Elkins, voluntarily went to speak with detectives at the Carrollton Police Department.
Carrolton Police Department
During the interview, Elkins told investigators that Beard was at home with her on the morning of the murder. She also described herself as a “stage 5 clinger girlfriend,” and said she would have known if Beard left the house that morning.
Oct. 6, 2020 | 1:30 p.m.
Carrollton Police Department
After her interview, investigators said Elkins made the following internet searches:
“Can I not be brought to court if I have a psychiatrist note?”
“vulnerable patients going to court”
“contact psychiatrist in Dallas”
“Can I not be subpoenaed to jail if I have a mental issue?”
Oct. 29, 2020
Beard spent two weeks behind bars before he was released on bond. Carrollton Police Det. Jeremy Chevallier said he was worried about baby Willow’s safety, so he reached out to the federal government to take the case under federal firearm laws.
Because detectives found an unregistered silencer during the search of Beard’s home, the federal government agreed to take the case.
Carrollton Police Department
Eight days after he bonded out, Beard was rearrested and ultimately charged with cyberstalking using a dangerous weapon resulting in death.
July 15, 2022
In June 2022, Beard pleaded guilty to cyberstalking and using a dangerous weapon resulting in death.
FBI
One month later, he spoke to the FBI as part of a plea deal. And he had a lot to say about Elkins’ involvement in Burkett’s murder.
“…It was…’this is how you’re gonna do this,’ it was, ‘… you’re gonna wear this dark makeup …’ That was her plan…that’s how it’s gonna be done,” Beard told the FBI.
May 24, 2023
Beard was sentenced to 43 years in federal prison.
June 21, 2023
After speaking with Beard, the FBI spent about a year building a case against Elkins.
Investigators found internet searches and a Walgreens receipt that connected her to the crime.
Carrollton Police Department
They also dug into text messages between Elkins and Beard. In a text sent to Beard one week before Burkett’s murder, Elkins wrote, “I hope you handle it I’m not coming home to b**s***”
Elkins was indicted on three charges: conspiracy to stalk, stalking using a dangerous weapon resulting in serious bodily injury and death and brandishing a firearm in relation to a crime of violence.
July 6, 2023
Johnson County Sheriff’s Office
Elkins was arrested at the Miami airport by federal agents after returning from a trip to the Dominican Republic.
April 9 – 16, 2024
Lizette Bowers
Elkins’ trial began at the federal courthouse in downtown Dallas. After six days, the case went to the jury.
April 17, 2024
Stephen Green
The jury deliberated for about an hour-and-a-half before they found Elkins guilty on all counts. On Aug. 15, 2024, Elkins was sentenced to two life terms.
CBS News
A week before Texas mom Alyssa Burkett’s murder, the killer received a text: “I hope you handle it”
After Alyssa Burkett was murdered, detectives quickly learned that the prime suspect was the father of her child, Andrew Beard. But as the investigation unfolded, they would find out that Beard wasn’t the only one involved in the murder plot.
Take a look inside the investigation.
Oct. 2, 2020 | 9 a.m.
Carrollton Police Department
Shortly after 24-year-old Alyssa Burkett pulled into her parking space at work in Carrollton, Texas, a man with a gun shot her in the head through her car window and fled.
Carrollton Police Department
Burkett survived the gun blast, got out of her car and tried to get help. Her bloody hand left a print on the office window.
The assailant saw Burkett running and chased after her. He stabbed and slashed Alyssa 44 times and left the scene in his black SUV.
Lizatte Bowers/Alyssa Burkett, Facebook
When Burkett’s mother, Teresa Collard, arrived at the scene, she immediately gave detectives a name: Andrew Beard. Beard was the father of Burkett’s 1-year-old child, Willow.
Oct. 2, 2020 | 12 p.m.
Carrollton Police Department
Hours after the murder, police officers stopped Beard in his white Ford F-150 pickup truck. His fiancée, Holly Elkins, and baby Willow were with him. Beard was told he could leave the scene, but he couldn’t return home. Officers also seized his pickup truck.
Oct. 2, 2020 | 9 p.m.
Carrollton Police Department
Later that night, police searched Beard’s home and found a GPS tracker battery and charging stations that matched a tracking device detectives discovered under Burkett’s car earlier that day.
Carrollton Police Department
Investigators also uncovered what they believed to be an unregistered gun silencer.
Oct. 3, 2020 | 12 p.m.
Carrollton Police Department
The next day, detectives searched Beard’s white F-150 pickup truck and found a backpack. Inside, they uncovered two bottles of dark brown makeup, and a pair of men’s hiking boots that had been cut into pieces and were soaking in bleach.
Oct. 3, 2020
Carrollton Police Department
Later that night, police located that black Ford SUV the assailant drove to the scene. It was found abandoned less than a mile from Beard’s house.
Carrolton Police Department
When detectives searched the SUV, they found a fake beard smeared with dark brown makeup.
Oct. 5, 2020
Carrolton Police Department
When Beard learned there was a warrant for his arrest, he turned himself in to the Carrollton Police Department. He was charged with murder.
Oct. 6, 2020
Beard’s fiancée, Holly Elkins, voluntarily went to speak with detectives at the Carrollton Police Department.
Carrolton Police Department
During the interview, Elkins told investigators that Beard was at home with her on the morning of the murder. She also described herself as a “stage 5 clinger girlfriend,” and said she would have known if Beard left the house that morning.
Oct. 6, 2020 | 1:30 p.m.
Carrollton Police Department
After her interview, investigators said Elkins made the following internet searches:
“Can I not be brought to court if I have a psychiatrist note?”
“vulnerable patients going to court”
“contact psychiatrist in Dallas”
“Can I not be subpoenaed to jail if I have a mental issue?”
Oct. 29, 2020
Beard spent two weeks behind bars before he was released on bond. Carrollton Police Det. Jeremy Chevallier said he was worried about baby Willow’s safety, so he reached out to the federal government to take the case under federal firearm laws.
Because detectives found an unregistered silencer during the search of Beard’s home, the federal government agreed to take the case.
Carrollton Police Department
Eight days after he bonded out, Beard was rearrested and ultimately charged with cyberstalking using a dangerous weapon resulting in death.
July 15, 2022
In June 2022, Beard pleaded guilty to cyberstalking and using a dangerous weapon resulting in death.
FBI
One month later, he spoke to the FBI as part of a plea deal. And he had a lot to say about Elkins’ involvement in Burkett’s murder.
“…It was…’this is how you’re gonna do this,’ it was, ‘… you’re gonna wear this dark makeup …’ That was her plan…that’s how it’s gonna be done,” Beard told the FBI.
May 24, 2023
Beard was sentenced to 43 years in federal prison.
June 21, 2023
After speaking with Beard, the FBI spent about a year building a case against Elkins.
Investigators found internet searches and a Walgreens receipt that connected her to the crime.
Carrollton Police Department
They also dug into text messages between Elkins and Beard. In a text sent to Beard one week before Burkett’s murder, Elkins wrote, “I hope you handle it I’m not coming home to b**s***”
Elkins was indicted on three charges: conspiracy to stalk, stalking using a dangerous weapon resulting in serious bodily injury and death and brandishing a firearm in relation to a crime of violence.
July 6, 2023
Johnson County Sheriff’s Office
Elkins was arrested at the Miami airport by federal agents after returning from a trip to the Dominican Republic.
April 9 – 16, 2024
Lizette Bowers
Elkins’ trial began at the federal courthouse in downtown Dallas. After six days, the case went to the jury.
April 17, 2024
Stephen Green
The jury deliberated for about an hour-and-a-half before they found Elkins guilty on all counts. On Aug. 15, 2024, Elkins was sentenced to two life terms.
President-elect Trump on Friday named Karoline Leavitt, his campaign press secretary, to serve as his White House press secretary.
Leavitt, 27, currently a spokesperson for Trump’s transition, would be the youngest White House press secretary in history. Previously that distinction went to Ronald Ziegler, who was 29 when he took the position in 1969 in Richard Nixon’s administration.
“Karoline Leavitt did a phenomenal job as the National Press Secretary on my Historic Campaign, and I am pleased to announce she will serve as White House Press Secretary,” Trump said in a statement. “Karoline is smart, tough, and has proven to be a highly effective communicator. I have the utmost confidence she will excel at the podium, and help deliver our message to the American People as we Make America Great Again.”
Leavitt replied in a post on X, formerly Twitter: “Thank you, President Trump, for believing in me. I am humbled and honored. Let’s MAGA,” the acronym for “Make America Great Again.”
The White House press secretary typically serves as the public face of the administration and historically has held daily briefings for the press corps.
MEGA
Trump disrupted those norms in his first term, preferring to serve as his own chief spokesperson. While he was president from 2017 to 2021, Trump had four press secretaries but frequently preferred to engage directly with the public, from his rallies, social media posts and his own briefings.
At a news conference this past August, Trump was asked if he’d have regular press briefings in his new administration. He told reporters, “I will give you total access and you’ll have a lot of press briefings and you’ll have, uh, from me.”
When it came to a press secretary, he said: “Probably they’ll do something. If it’s not daily, it’s going to be a lot. You’ll have more than you want.”
Leavitt, a New Hampshire native, is seen as a staunch and camera-ready advocate for Trump who is quick on her feet and delivers aggressive defenses of the Republican in television interviews.
She worked as a spokesperson for MAGA Inc., a super PAC supporting Trump, before joining his 2024 campaign. In 2022, she ran for Congress in New Hampshire, winning a 10-way Republican primary before losing to incumbent Democratic Rep. Chris Pappas.
During Trump’s first term in office, Leavitt worked in the White House press office. She then became communications director for New York Republican Rep. Elise Stefanik, whom Trump has tapped to serve as his U.S. ambassador to the United Nations.
Trump’s first press secretaries, Sean Spicer and Sarah Huckabee Sanders, were known for quarreling with reporters. Another, Stephanie Grisham, never held a briefing. Her successor, Kayleigh McEnany, often lectured the news media during her appearances in the White House press briefing room.
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In their final meeting, Xi tells Biden that China is ready to work with a new US administration