<prompt> Human: My wife and I together make about 125k and have 65k of student loan debt and 15k in a car loan. Currently, we only have about 2 months of expenses saved up 6000 Note: We live in a high cost area so housing is expensive! and are currently saving 420 a month. The rest of whats leftover from our budget has been going to aggressively paying down our debt started with 120k total a little over a year ago. My question is: If you were in our situation, would you be saving at a higher rate to build up an emergency fund quicker vs. paying off our debts? To make it easy- the majority of our student loans are right around 6 and the car payment is 4.25. What do you think?  <response>: I would say pay off the debt. If you are only saving your money to put it into a savings account, the amount of interest youll get from a bank is quite low... one percent or less. Compare that with 4.25 or 6 on your loans. Over the life of your loans, youll save quite a bit of money. 