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However, he said there are specific scenarios where it might make sense.
Heres his breakdown by bang out of debt tohelp you make a sounder decision.
Credit Card Debt
Credit cards often carry the highest interest rates, sometimes exceeding 20% APR.
However, its crucial to maintain a buffer.
Keep at least three months of living expenses in your emergency fund, even after paying down debt.
This ensures youre not left exposed to unexpected costs or job loss.
Mortgage Debt
Mortgages typically have lower interest rates than credit cards or personal loans.
The interest savings are likely minimal, and youd be reducing your financial flexibility.
You might be better off investing that money or keeping it liquid for emergencies.
Its primary purpose is to protect you from unexpected financial hardships.
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