A. When getting out of debt you want to start by putting aside a small baby fund for emergencies of $500 to $1,000.
Then you want to work your budget and continue to save for annual expenses. This way you don't go into debt for emergencies or events that you knew would be coming up.
But then your focus becomes getting out of debt. By paying off debts with interest rates of 5% and higher, you are actually saving hundreds of dollars each year.
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