Everyday Cheapskate: Anxious savers need to rework repayment plan

Dear Mary: We are making progress with our rapid debt-repayment plan, and we're at a point where we are now paying more than the minimum monthly payments on our unsecured debt. But we have no contingency fund.

Fear and worry about what we will do if any little thing goes wrong is like a big black cloud that sits over my head. Should we pull back on our rapid debt-repayment plan and save the difference?

-- Michelle, Ga.

Dear Michelle: Yes, absolutely. Building your contingency fund takes priority over speeding up your unsecured debt-repayment plan.

Do this: Go back to your rapid debt-repayment plan manager at DebtProofLiving.com, and start a new rapid debt-repayment plan. This will give you a plan based on your current minimum payments. Of course, this is going to prolong your debt-free date, but it should free up some cash to stash into your contingency fund.

I cannot stress strongly enough how important it is for you to be saving money every month. Money in the bank will calm your spirit and blow that dark cloud away.

Do you have a question for Mary? Email her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2099, Cypress, CA 90630.