Hey Everyone -- I am a newbie so thanks for your help. We've accumulated debt like many families, and recently I took a significant lump sum severance and immediately found a new job. Question is, do I wipe out all debt instantaneously (hooray!) and hope job security in this unprecedented time prevails, or I live by the "cash is king" rule and hold for emergency funds if the bottom falls out? I am leaning towards holding cash since most of us have no idea what we are experiencing at the moment. Your comments are appreciated!
You should have cash (or safe investments such as CDs) for at least six months worth of expenses, as much as a year if you think you could have trouble finding a job. After that, pay off the highest interest rate debt first.
