<prompt> Human: Edit: I wasnt able to clarify my own context. As uNot_a_Mainer assumed, I am in a position where I have both interest free debt, and roughly a 3-month emergency fund. It took me quite a while to save up for, but at the same time I really hate the feeling of lingering debt. Edit: Again I apologize for leaving out details of the context. I used my situation to put a very general question out there as I was curious as to how people would prioritize given the situation. I now realize that context is everything.Its a complicated situation where a family member was allowed to consume services phone, internet, etc., some of which were under my name. We found out she hasnt been paying the bills for these and payments default to me. Said family member is still in school. With the wages here, it would be impossible for her to pay the bill unless she works full time.A few family members who were also affected but whore also better off agreed to foot my end of the bill as an interest free loan.Assistant: The actions that allowed you to save 3 months of salary are the same ones that will allow you to pay off that debt.Im reading into your question and think you have 3 months salary saved right now, and asking if you should apply it to your debt. My suggestion would be to cash-flow payment of the debt, holding onto that cash reserve.Human: Yes, this is exactly the situation. I failed to mention that at the start. It took me a while to get to a 3 month emergency fund going, but at the same time I really hate lingering debt, even though it is interest free.  <response>: Like others said, keep the efund. Youll pay down the debt but if something bad happens youll be happy to have the cash. If u have no efund and something bad happens,youll end up with debt with high interest. 