Emergency fund or debt payment?
I just finished paying off my credit card and line of credit debt (took many years -- whew!). I still have an $8000 bank loan, a $4000 student loan, and my mortgage.
I was planning to keep hitting my debts hard, but I've read that some advise creating an emergency fund first, so that I won't have to use credit if an emergency comes up. I see the rationale, but I don't want to lose momentum in my debt repayment. I have a very secure job with health benefits and I have no children (plus I live in Canada, so health care is free). Potential emergencies could include house and car repair, or my old dog getting sick or injured.
What is your view? Should I keep paying down my debts, or stop and create an emergency fund?