Dear Dave,

I feel truly blessed. Even with everything that is going on these days, I still have a steady job and a good income. I’m thinking about taking some money out of my savings account in order to completely pay off my credit card debt. How do you feel about this idea?

Erin

Dear Erin,

It’s not a bad plan if you’ve come to a point where you understand a few things. The credit card and the debt aren’t the real problems. They’re symptoms of buying things you probably don’t need with money you don’t have. You need to take a long look in the mirror, because the person who’s looking back at you is the real problem.

If you can accept this, and are committed to changing yourself and your financial habits, I’d say go for it. Just don’t wipe out your savings in the process. Leave plenty of cash in there, especially right now when so many things are uncertain. Also, make sure you cut up that credit card, close the account, and make a promise to yourself that you’ll never use those things again.

Once you do all this, and start living on a written, monthly budget, rebuild your savings as quickly as possible. Saving money is always a good thing. And everyone needs an emergency fund of three to six months of expenses for the unexpected stuff life throws at you!

—Dave