Clearing Debts V Saving

MrsPitcher2b

Hello Everyone,

I have been thining about this, just wondered what everyone elses opinions are.

OH and I are lucky to have quite a bit left over at the end of our bills to help clear our debts - we just havent bothered trying until this month!!

I have noticed that a few people are saving as well as paying towards their debts. Me and OH are going to be saving for a wedding/mortgage. We already have 30K savings which we will only be using for a house. We put £50 a month into this, although have had months where we ended up using that £50 so i probably owe those savings a grand or something..

We were planning on saving a fair bit a month for the wedding and paying off the debts a little bit each month. Then i decided i didnt like the debts and didnt think it was right spending so much when we were in debt - and i think we could save more each month when the debts are gone.

What is everyone elses views on savings whilst being in debt? I can see why saving and clearing the debts would have incentives as you could atleast see some sort of bonus in the high bank balance you may have!!

Smamfer

Hi there,,,

I personally would clear up my debts before having savings, as i said my personal view. Having savings must be satisfying,,,( ill let you know when i get some) and a relief should things go wrong... but having debts can be worrying and even if you can afford to pay monthly etc you never know what is round the corner or when you may need to borrow again,

Numpty_Monkey

If you have your debts on a lower interst rates than your savings, then you are making money
if its the other way around, then pay your debts off
(but keep an emergancy fund)

Just noticed your sig, if they are on 0% keep going as you are

If not pay your debts off:T

my personal opinion:o

CLAPTON

paying interest on the debts is a total waste of money.
in your situation, unless the debts arre interest free it's a no brainer to pay off the debts.

Buffythedebtslayer

Wow if I had 30 grand savings, I pay off my debts - especially if the ones in your sig are all you have!

pay off your debts, and then save loads - if you like you could treat the savings as a debt that must be paid each month?

as long as you have debts your savings aren't really all yours?

I mean I can talk, I am saving a bit and every couple of months i pay extra on the CC card. I have just started saving my pennies, literally 1p and 2p's for a house. I would expect that when I get close to paying off my debts I would use it to pay off the last bit tho, it will be too tempting not to!

xx