Which is more important, paying off your debts or saving money? It’s still the never-ending debate between financial experts from all over the world, and unfortunately there is no easy answer to this.
Many gurus insist that paying off debt should come as priority, simply because the interests that debt accrues are higher than what will be earned by putting your money in a savings account. Indeed, when you reflect on this, interests from debt really negate what you will earn with savings.
On another perspective, one of the reasons why people get into debt is because they didn’t have enough savings to cover for them during times of financial crisis, thus they were forced to borrow money. This is why other experts claim that saving money shouldn’t be halted while in the midst of debt repayment.
Personally, I agree with the latter claim. For me, it could take years to ever finish repaying off all your debt, and during that time, it’s such a big waste on the money that should grow towards your retirement. While in the midst of debt repayment, you can lessen the amount you put into your savings, but I don’t advise stopping entirely. While this approach doesn’t make sense mathematically, it should benefit you in the future.