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76 percent of consumers in a recent online poll conducted by the NFCC asked about their New Year’s resolutions said they would decrease debt while only 6 percent said they would increase their savings. I don’t know about you, but to me this strategy seems bound to failure.
Without savings, decreasing debt only sets you up for more debt if you hit an emergency. Financial planners say having 3-6 months worth of expenses in an emergency fund would keep you from slipping back into debt while you’re trying to dig yourself out. You should have a plan to decrease debt while building your emergency fund. This is probably your best way to finally break the debt accumulation cycle.
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