BBC Finance - more racism

hallmark

StevieJ wrote: »

So what, provided the excess cash is stashed in higher paying accounts e.g. Fixed Cash Isa or NS&I (when available).

This has been covered in a different thread, but to summarize; paid off debt tends to stay paid off. Debt + savings tends to result in savings being spent & the debt remaining.

Generali

hallmark wrote: »

This has been covered in a different thread, but to summarize; paid off debt tends to stay paid off. Debt + savings tends to result in savings being spent & the debt remaining.

I think that depends on the nature of the individual TBH.

I would have to pay off debt as I'm a beggar for a nice meal out or a holiday. However for others they can have 2 balances, no problem.

hallmark

Generali wrote: »

I think that depends on the nature of the individual TBH.

I would have to pay off debt as I'm a beggar for a nice meal out or a holiday. However for others they can have 2 balances, no problem.

I think you're right in principal but the actual doing it is so difficult in practice that "pay the debt off" is just overwhelmingly good advice IMO. The absolute worst-case of just paying off the debt isn't that bad. The worst-case of not doing so is a lifetime in debt. We can see this all around us everyday.