<prompt> Human: So I have 1000 for an ermegency fund right now. After fixed costs, minimum payments of loans, 401k, and rent I have about 1200 left for the month. I have two student loans that are 8000 total and they have an interest rate of 7.5 the others are much lower. Should I try and save up a 5000 emergency fund first, or pay off the loans more agressively? Would a compromise between the two work better? Breakdown per month: Rent: 650 Medical bills Have 10 months left: 150 Zero interest loan from parents 0: 159 Low interest loan min payment 3.5: 100 High interest loan min payment 7.5: 110 Various fixed costs website, electricity: 50  <response>: I think its safer to split the extra 1200 for a bit. You could have enough to pay them off at the 6-month mark if you saved 600 and put another 600 towards your principal.Then you can decide what you want to do: drain most of your savings, or keep the debts a little longer to protect your safety net. 