Smart Finance: Should You Save or Pay Off Debt First?
Explore the pros and cons of saving while paying down debt and how to balance both goals.
Understanding the Trade-Off
Paying off debt reduces interest costs, while saving builds security. Both are important, but prioritizing depends on your situation.
When to Focus on Debt
If your debt has high interest rates, prioritize paying it off quickly to save money over time.
When to Focus on Savings
If you don’t have an emergency fund or need financial stability, saving should come first to avoid new debt.
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