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.

Share this: