<prompt> Human: Everywhere I look, I am advised as a first step to getting out of debt to build a 1,000 emergency fund. However, it has made more since to use any money I would devote to an emergency fund to the credit card and save myself the interest 46.3 centsday or 14.08 a month. What am I not understanding? Thank you.  <response>: I am a big believer in the 1k mini emergency fund. I started my debt paydown 72014 and getting that 1k aside was my first goal. I got it stashed by 92014 and less than a month later my spouse needed emergency dental work. Our cost after insurance didnt completely wipe out the fund, but it ate about half of it. If we hadnt had it then those charges would have gone onto a credit card, putting us further into debt. I had to dip into the 1k EF again in 41015 when we blew a transmission. The other reason I wanted emergency cash available was just in case my cards slashed my limits once I started paying off the balances. Its called balance chasing and Ive had it happen before: youre carrying a debt, make a big payment, the card company lowers your credit limit to about 100 more than your new balance. If Id thrown my cash at the cards and this had happened, we would have had NO way to pay for the dental work or transmission. 