Is it right to have no savings to pay off debt

HazelEyes_3

How much do you pay into your endowment?

Use the snowball calculator www.whatsthecost.com to work out your DFD using your current repayments and then again if you add the savings in. There should be a dramatic difference. You can then work out how quickly you can restore your savings once you are debt free and switch your debt repayments to your savings.

Provided you have the discipline not to run up debts again, keep one of your credit cards for your emergency fund.

Though as has been said only you can decide what works best for you.

yeslek

immoral_angeluk wrote:

To me savings are a waste when you're in serious debt.

i'd have to half agree.

it makes more sense to pay off high interest cards out of low interest savings but i refused to use all my savings for this as i'v found (through experience the last two years) that having a bumper of even a couple hundred quid has saved me from suddenfinacial short falls.
i'v dipped into it every so often and i havnt had to resort to credit cards and overdrafts.
then i try and put little bits back as often as i can, if i have a spare tenner or so, or cant think of anymore bills that need paying that month, i'll put it in my savings.
granted the amount does bounce up and down a lot but i think that every, especially those trying to get out of debt should have this sort of bumper just for emergancies