<prompt> Human: My girlfriend asked me for personal finance advice, and I want to make sure that I pointed her in the right direction.She recently bought a new car and owes 16,000 at 3.2. Minimum monthly payment is roughly 350. This is her only debt.Income: 3,000month, Expenses: 1,200month HCOL area, but found very cheap rent, Current Emergency Fund Savings: 6,500, Retirement Contributions: Up to full employer match, no more.Despite this car purchase, she is very debt-averse and wants this weight taken off her shoulders. Because of this, I recommended taking her emergency fund down to 3,000 which is the level that she feels comfortable with and applying the extra 3,500 towards the debt immediately. Since she doesnt have any major purchases planned over the next 12 months, I recommended that she aggressively attacks the debt and puts every possible extra dollar towards it until the debt is gone.I understand that she could be putting this money into an investment vehicle and hoping to get a higher return, but due to her feelings towards debt, I think the peace of mind of being debt free and the guaranteed 3.2 rate of return is reason enough for her to pay it off.What are your thoughts?  <response>: 3000 is really not enough of an emergency fund. If she loses her job she has less than two months of expenses. Does she have health insurance? I bet her deductible would wipe out a third to a half of that.3.2 is a good interest rate. Contrast the peace of mind of being debt free with the peace of mind of being able to deal with emergencies.Dont even think about investments yet. Just put the emergency fund in a high yield savings account. 