Debt Solutions
Expert answer
Reference guide
How do I manage debt while also building an emergency fund?
Anonymous
0 replies
Expert answer
You can — and should — do both at the same time:
- Build a small buffer first (₹10,000–25,000) so an emergency doesn't push you into new debt. Keep it in a savings account or liquid FD.
- Make a budget — list all income and every expense, and be honest about what's essential.
- Use the avalanche method — pay the minimum on everything, then put any extra towards the highest-interest debt.
- Cut non-essentials — even ₹3,000–5,000 a month adds up over a year.
- Increase income — extra hours, freelance work or selling unused items speeds things up.
SingleDebt's free financial literacy course on singledebt.in has budgeting templates and payoff calculators.
SA
SingleDebt Advisor
Replies (0)