I just won $600 in a work raffle, which is amazing because my cheese budget usually wins instead. I've got a $450 credit card balance at 18% APR and a small emergency fund that's stuck at $500. My monthly cash flow is tight for the next two months due to car insurance. I also need new work shoes soon. Would it be smarter to wipe the card now or pad the emergency fund so I don't end up swiping again? I'm aiming for a simple plan that future me can stick to even on sleepy Mondays.
18% is daylight robbery, but zeroing it and swiping again next week just traps you. Buy the work shoes in cash, park about $200 as a mini buffer & and throw the rest at the card. Then set auto-pay at least the minimum and stick the card in a drawer until the insurance crunch passes.