How much emergency savings should you keep while paying off debt

Sponsored MoneyWatch: Managing Your Money How much emergency savings should you keep while paying off debt? We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Angelica Leicht Angelica Leicht Senior Editor, Managing Your Money Angelica Leicht is the senior editor for the Managing Your Money section for CBSNews.com, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications. Read Full Bio Angelica Leicht May 22, 2026 / 2:58 PM EDT / CBS News Add CBS News on Google In today's economic landscape, it's important to balance paying off debt with building an emergency fund. Nora Carol Photography/Getty Images Americans are continuing to face mounting financial pressure in today's economic landscape, and it's taking a major toll on their financial and mental health. One of the main drivers is inflation, which is climbing rapidly and driving up the cost of essentials, making it increasingly difficult for people to find room in the budget to cover the basics. In turn, more people are turning to credit cards to bridge the financial gaps. The problem with that approach is that credit card interest rates are elevated right now, and as the interest charges compound, it's adding even more stress to borrowers' budgets. That strain is becoming clearer in terms of how people are managing their money. According to a recent study from Achieve, the growing debt burdens Americans are facing are taking a serious financial and emotional toll, with many borrowers reporting ongoing stress related to what they owe and their and monthly expenses. As a result, borrowers may think the best approach is to use every available dollar to pay down what they owe. But while aggressively tack...