Anonymous
Anonymous asked in Business & FinancePersonal Finance · 2 months ago

Is it better to pay off debt before saving?

Im literally throwing every cent I earn towards my bills, which I should have paid off in about two months time. ...,.. but I only have 70 in the bank 😬 should I be saving the money and then paying off my credit cards later when I have that money?

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  • 2 months ago

    yes, because the debt ususally carries interest you have to pay.

  • 2 months ago

    If it will only take you two months to pay off all your debt, then go for it. If it would take any longer, I'd tell you to scale back just a bit and KEEP saving--but for two months?  That's totally worth the break in saving. 

  • 2 months ago

    I would stash about $1000 as a mini-emergency fund, but once that is done, I would pay off debt as quickly as possible.

  • 2 months ago

    Nope. Debt falls off your credit report in 7 years and in 14 years tops is immaterial. How much money would you put away in that time? Pay off your current debts (1 year or less) Stuff that's old, forget about it. TRW will. AND STOP RUNNING UP NEW DEBT!!! 

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  • 2 months ago

    FAR better.

    Look at the interest rates. What are you getting on your savings account? 1% if you are lucky. 

    Then look at what you are being charged on your debt. If it's credit card debt, then it could be 25% or more.

    Clear your debts and then think about savings.

  • Anonymous
    2 months ago

    Yes........................NO

    2 QUESTIONS IN ORDER

  • 2 months ago

    that would be the stupidest idea ever. first u pay the debt. then u live your life

  • 2 months ago

    Paying off debt IS saving. No bank will pay you 18%. 

  • Anonymous
    2 months ago

    Pay off debt.  The interest you will save will be worth it.

  • 2 months ago

    There is really no 1 best way, but I would recommend paying off your debts FIRST.

    The reason is because once all those debts are paid off that same amount of money can be saved every month.

    I've been debt-free since 2006.  I haven't paid 1 penny in interest or a fee on a credit card in over 30 years.

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