Pay Off Credit Cards at Expense of Emergency Fund

So I have been a long time lurker on this thread and now am now looking for some advice on how aggressively to get out of credit card debt. I have followed the snowball method and been paying off lowest credit cards and now am in the “home stretch.” I started the 2018 close to 22k in credit card debt with 30k in a car loan and a ton of unnecessary expenses. To make it worse I had maybe 700-800 in the bank with no back up plan or savings. I had a job that didn’t support this lifestyle and told myself I needed to make some changes.

I found a new job and followed the 50/30/20 rule. The job paid a lot more but I had to move to a more expensive part of the city and still had a hour commute each way. While my rent payment doubled my income grew by 75% as well and I went from a feast or famine sales income to contracting out my time with weekly paychecks averaging 40-45 hours a week at a solid contract rate. As of now I have 10k in the bank and 11.5k in credit care debt and got my total loan of the car to 19k and refinanced with a different loan provider to save quite a few of those precious interest points. A huge help was using balance transfer cards with the 0% interest for 18-22 months. It was a 3% fee but getting that no interest payment was a huge benefit for having me get on top of my finances. Also I have been cutting out unnecessary spending, meal prepping, shopping around for every purchase over $50. I just wanted to thank everyone in this thread otherwise I would still be in a terrible position.

What I am trying to figure out is I am at the point some of my 0% interest are ending. I have that money saved up in the bank and am wondering if I should just use the vast majority of my savings to wipe out that debt or am I undervaluing the value of a rainy day fund. I know the motivation to be done with credit card debt is likely making me want to drain my savings, but I could always do another transfer and spend 3% to follow along this road and get out of debt within 12 months or so. While I have stable clients on my contracting job, there is always risk with any job. Is it worth completely wiping out the debt to more aggressively save or stay the course.

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Author: /u/nnell912

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