What do I do? Savings vs debt

Annie_Fanny

Wiggly let us know what you decide and how you get on. When someone posts on here that they are debt free it really helps the other people on here that are chipping away at their debts and gives us all a boost. Another person becoming debt free is pure joy to us!

black-saturn

I would definately use savings to pay off debt. The interest you get on your savings is nowhere near what your paying in interest on the debt so your losing out. Savings will soon mount up quickly again once the debt is paid off.

tesuhoha

I would pay off the debt. Otherwise you might find something that you want to spend the money on. As someone else said you'll be able to save up again and you will enjoy your savings more, knowing that you dont owe anyone anything.

wiggly

Right thats everything cleared Halifax CC £0, Egg CC £520 (waiting for expenses claim from work to pay that off), Tesco £690 (waiting for money from other half to pay that off)

Can't wait for those 2 to go, then I'll celebrate by chopping them all up into tiny weeny little pieces

Annie_Fanny

Well done wiggly!

woohoo_postingid

The problem with having savings (whilst still having debts) is that it is very easy to use the money to buy other things and before you know it, you will have no savings and still have the same debts as before. Ultimately a losing solution.

(I know, I've been there!)

david_hellier

Quite simple really; if the rate on the debt is greater than the rate on the savings, pay off the debt with the savings.