Emergency Fund: Having an emergency savings fund is even more important than being debt-free. “The sad reality is that the credit card industry is taking actions to protect themselves with no regard to your needs or how good you have been in paying your bills on time,” she said, referring to the fact that credit card companies have been lowering credit limits, increasing interest rates, and revoking credit cards altogether.  This means that many could find themselves without any access to credit following a job loss, when they need it most.  Imagine you are out of work and have no credit card,  you won’t be able to support yourself in this situation.   That is where emergency find becomes critical.   So top up your emergency fund before paying of the credit card in full.

First pay of the cards which is having more interest rate.  In this way, you can prevent paying high interest.