If you've been fortunate enough to be able to save a little money, using it to make a big payment towards your debt may seem like the best option. However that isn't always the case. It may be better for your financial health to add to your emergency fund or retirement savings rather than take money out of those places to pay down your mortgage. Carmen Wong Ulrich explains how to judge when you should save and when it's okay to spend.

If you have a financial question you'd like Carmen to tackle, post it here in the comments or email us directly at ivcommunity@mail.ivillage.com

Watch Carmen Wong Ulrich's 'On The Money' Saturdays at 8PM ET on CNBC! Find more information on coping with the economy with our Bail Yourself Out resources.