Posts Tagged ‘paying off debt’

Getting Out of Debt vs. Saving Money

Posted June 15, 2009 by Bernz

There are two conflicting tips that are offered by financial experts during these turbulent economic times. The first is to pay off your debts and to save money. For an individual who is already overextended, how would you know which one you should prioritize? Well, each situation is unique and it is difficult to generalize when it comes to situation of each person.

debtorsave

However, there are several questions you need to ask yourself before making the decision:

• How much do you have in your savings right now?
• How much money do you owe?
• How much interest are you paying for your debts?
• How much are you earning every month?
• How secure is your source of income?

Essentially, people who are not worried about losing their current source of income in the near future should focus on debt repayment. They should start paying off the debts with the highest interest such as credit cards before moving to secured debts. In addition, if the amount of debt you owe is easily payable within one or two months, don’t put it off because it is just a waste of interest money. The main point is, you should plan debt repayments thoroughly and carefully. (more…)

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Posted in Credit Card Management, Debt, Financial Goals, Saving Money | No Comments »