It is typically a good idea to pay off your credit card debt before saving for any other goals. However, it depends on your individual situation.

If you do not have an emergency fund and have credit card debt, a good strategy to consider is establishing a savings account with one month worth of income to provide some cushion, and then focus on paying off your credit card debt as quickly as possible. Once you have paid off your credit card debt, you can refocus on saving in your emergency fund until you have at least three months worth of income saved.

This strategy allows you to have peace of mind that you have some money available if needed, while you work on paying off your high interest debt.

Based on your unique situation, your Domain Advisor can help you establish a personalized plan to pay off credit card debt and establish an emergency fund.

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