Do you have savings and debt?

roves1

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spam.jam

roves1 wrote: »

Conventional wisdom says that you should not save if you are in debt, but many do.

Very good point made on MSE a lot thankfully, it makes no sense to pay interest on a debt and have savings earning you very little simultaneously x

SamanthaA

Ahhh, but some of us feel better for having an EF so we don`t return to the nasty CC, or whatever in the event of an emergency!

penniesgrowintopounds

I have some savings, which I could use to reduce my debts. But I prefer to know that I have a little buffer there ~ it gives me some peace of mind. x

SamanthaA

SamanthaA wrote: »

Ahhh, but some of us feel better for having an EF so we don`t return to the nasty CC, or whatever in the event of an emergency!

EF so we don`t return to the nasty CC, or whatever

OD are also at rather HIGH intrest rates on most accounts, or not available on a basic one.

Billy_two_speakers

cars break down
shoes gets holes in them

slates comes off roofs

pipes burst

and many other things happen too

its not savings its a slush fund for them things that happen

you might not get much interest but its better than paying 15% or what ever credit cards charge these days

tripled

My finances should mean I could pay my loan off in a couple of weeks, leaving around £500 left over. However I will probably keep £1000 to one side (leaving £500 on the loan), as I don't know what will happen in January. I could lose my job, or need to repair the car, or both.

mooomin

I have about £100 in savings, which could go towards my debts, but I would rather know that I have non-debt money to draw on if something breaks in the house.

I'm working too hard to clear the debt to fall back into using my cards.

I'm doing the PAD Challenge towards the debts and trying to put a little money into savings every few days as well, even if it's just pennies.

SuSu1871

I'm saving to pay off my debt quicker. It's due to end in March 2010 and I can't overpay, so I pay about £600 off the loan and save about £300. As the debt comes down the savings go up. They're set to balance in May/June next year when I'll use my savings to clear my loan.

Then - finally - I'll be debt free for the first time in nearly 20 years!!

Flower08

I have about £500 in savings, and about £3300 of debt on CCs.
I know people on here think i should just pay that straight onto the debts but it is money that is already allocated for a holiday. Again i know people think i shouldnt be going on holidays when im in debt but it is a yearly trip to visit my parents who live abroad - wouldnt miss it no matter how much in debt i am!!

Flower08

Cash for both, will have saved about £1500 by the time i go. I see your point but financially it wont really make any difference, that money will still be on the the credit card one way or another whether it be now or in 6 months when i go on holiday.