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Saving Money While Paying Credit Card Debts
#1
Financial advisers have varying advice for people who are struggling to pay credit card debts. Some say that borrowers should first strive to pay the credit card balance in full before trying to save money. Some even advise people to sell their belongings or use their savings to settle their debts. On the other hand, there are those who advocate saving money while paying debts. They say that this will instill the saving habit and ensure that the borrower has funds to turn to in case of emergency. This can, however, extend the repayment period for the debt which means paying more interest and fees. 

Do you think it is a smart move to still save money while you are paying a huge credit card debt?
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#2
Saving is really a good thing. We should always save and invest on things that could add assets but if you have current debts, in my opinion, it's hard to save while not paying the whole amount because it's true, you'll just be paying more interest so I'll rather find ways to pay my debt first in full then save. But of course, if I can, I'll save even a small amount while paying current debts for emergency fund.
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#3
If you mean saving while paying the full amount of your monthly amortization in you r credit card debts, it's definitely a good thing. However, if you mean saving some money pinching some of it from your credit card payment, i don't think that's a good idea though. It will generate interests on top of the interests and that's what will keep you under the pile of debt eventually.
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#4
(01-04-2018, 01:29 PM)Camilla Wrote: Financial advisers have varying advice for people who are struggling to pay credit card debts. Some say that borrowers should first strive to pay the credit card balance in full before trying to save money. Some even advise people to sell their belongings or use their savings to settle their debts. On the other hand, there are those who advocate saving money while paying debts. They say that this will instill the saving habit and ensure that the borrower has funds to turn to in case of emergency. This can, however, extend the repayment period for the debt which means paying more interest and fees. 

Do you think it is a smart move to still save money while you are paying a huge credit card debt?

I would go with the second option of saving money while I pay the debt of credit card in the sense that it is a reasonable way to plan for the future. Also, I would be comfortable with such option especially on a situation where the interest being paid on the debt is moderate and flexible. If the interest to be paid happens to be higher, then I will have to pay up the debts first, but that doesn't mean I should not be saving at that period.
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#5
I prefer paying my debts first before saving money. Interests might accumulate if you don't prioritize your debts so savings will be useless if it goes to your debts at the end. I want to save money if I know that I don't have a debt anymore. For me, it's more peaceful saving money if you're debt free. Prioritizing the hurdles first would be easier to save lots of money.
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#6
(01-04-2018, 01:29 PM)Camilla Wrote: Financial advisers have varying advice for people who are struggling to pay credit card debts. Some say that borrowers should first strive to pay the credit card balance in full before trying to save money. Some even advise people to sell their belongings or use their savings to settle their debts. On the other hand, there are those who advocate saving money while paying debts. They say that this will instill the saving habit and ensure that the borrower has funds to turn to in case of emergency. This can, however, extend the repayment period for the debt which means paying more interest and fees. 

Do you think it is a smart move to still save money while you are paying a huge credit card debt?

What's the point of saving money when you will have to pay more interest? That's basically pouring water in a bucket without a bottom.

I would pay my debt first. I don't know, maybe it's just the type of personality that I am, but I can't stand when I owe money to someone. I just don't feel well and I think about it all the time. That's why I never got a credit card. I'm a fan of debit cards.
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#7
I always prioritized paying my debts than saving. The reason for it is simply because of the interest and I couldn't risk the clear record I have with the bank. They are my go to when it comes to funding my business so paying my debts balances everything for me since the source of my income came from the loan I got from them. My loans are invested meaning it generates income where I can pay the loan itself and saves money as well.
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#8
Paying debt and saving money are both very important decision to take..... One often gets confused as to which one to actually commit to, because if a person commits to saving money entirely and not paying up the debts then that person can find himself back to square one as not paying the debts on time will lead to more debts which may as well consume the entire saved up money. On the other hand if a person commits to entirely paying off the debts without saving up a single penny even then he finds himself back to square one which is using the credit card again and the cycle goes on repeating as he won't have any money for normal use. For such cases it's most advisable to go with the flow... Do both a little here a little there.... Rest all will run smoothly. Save up a little pay up a little and both problems will be solved and no one will be the wiser.  Shy
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#9
Well, if you can still save money whilst paying a debt that'll be great. As long as you're daily expenses is not affected as well. For me thought, nowadays, I think saving is not viable anymore since saving doesn't actually generate income. Why not invest instead?
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#10
(01-06-2018, 09:40 PM)thediamante Wrote: Well, if you can still save money whilst paying a debt that'll be great. As long as you're daily expenses is not affected as well. For me thought, nowadays, I think saving is not viable anymore since saving doesn't actually generate income. Why not invest instead?

The thing about investing is the need to have a better option as regards making returns on investment. This is the reason saving first is better while decisions be made on whether to invest and what type of investment that should be done. So, paying debts while saving is a good option.
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