Savings...advice

Cypher

I agree with the posts above, he needs to pay off his debts as he goes along otherwise the interest payments will keep increasing the debt quicker than the savings are earning it.

The way I did mine was to first change my spending attitude. If I ain't got the cash I don't spend the money. This as far as I'm concerned is the major step. If you keep the bad habits of buying whatever you want you will just end up back in the same debts.

I then saved up a small emergency fund. £500 initially once I had that I cut up my credit cards. Any spare money I had then went to paying off my debts. If I dipped into the emergency fund, I then paid it back ASAP.

Is it one debt he owes or many ?

The conventional way to reduce your debts is to pay off the ones with the highest interest first and make minimum payments on the others. Also look at moving to cheaper alternatives by shifting balances etc. Nowadays with the fees thats not as easy to do.

I did things a slightly different way and possibly not the cheapest way but it worked for me.

I reduce all debts to the minimum APR's possible by shifting them around on credit cards etc some were also buy now pay laters etc and loans. Where I did things slightly different to the norm was to pay off the smallest debt first whilst making minimum payments on the others. Once the smallest was paid off I felt great and it got paid off really quick as it was only small. The payments from that one moved to the next smallest and so I now made much bigger payments on that and got that paid off really quickly as well. I kept doing this until they were all paid off and whilst doing so I was always on the lookout for good offers on credit cards etc offering lower APRs so I could reduce the interest where possible.
I also grabbed as much overtime at work as I could and that all went straight to paying off debts. I still now have a base line take home wage I work to, anything over that gets saved.

yasenp

I would invest a part of the money in smth riskier, like forex markets for example(not trading myself ofcourse).