Save or pay off credit card debt?

It’s not uncommon for me to see someone with credit card debt and a savings account.

My question is always – why?

Whilst you are saving and earning interest of +/- 1% on your savings account, you are paying out +/- 20% on your credit card.

The net effect is going backwards by 19%.

The pic shows what happens if you use some of the savings to reduce the debt.

We all need some cash on hand but get that debt down ASAP.

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