01Emergency Fund or Pay Off Debt First?
Build a small emergency fund first, then attack your debt. For most UK households the right order is: save a £1,000 buffer, then throw every spare pound at your smallest debt.
Why first? Without a small buffer, this is what happens:
• Car needs new tyres: £200 on the credit card
• Boiler packs in: £400 on the credit card
• Kid's school trip: £50 on the credit card
You're not making progress. You're treading water. Every win gets undone by life happening.
02The £1,000 Buffer
Before you start your debt snowball properly, scrape together a small emergency fund. £1,000 is the sweet spot:
Big enough to handle most surprise bills without panic.
Small enough that you're not sitting on cash while debt costs you interest.
Specific enough that you'll actually do it. Not "3-6 months expenses" which feels impossible when you're in debt.
This isn't about being cautious. It's about protecting your momentum.
03Then What?
Once you've got your buffer:
1. Minimum payments on everything: keep the plates spinning.
2. Every spare pound goes to your smallest debt: that's your snowball.
3. Touch the emergency fund only for actual emergencies, not holidays, not treats.
You're building a debt payoff machine that won't stall out when life gets expensive.
04What Counts as an Emergency?
Yes: Urgent car repairs, broken appliances, medical bills, emergency travel.
No: Sales, birthdays, "I really want it", planned expenses you forgot to budget for.
If you dip into it, pause the debt snowball until you've topped it back up to £1,000. Then carry on.
The goal is debt freedom. The buffer is just insurance that you'll actually get there.
05Ready to Start?
Build your £1,000 buffer first. Then calculate your debt-free date and start your snowball.
The combination of a small safety net and focused debt payoff is what actually works. Not perfect maths. Not complicated strategies. Just momentum you can protect.