Save? or pay off debt?

使用支付保护服务，如Apple Pay或Google Pay #生活常识# #购物消费技巧# #线上支付安全#

Getting into a savings habit is important, but so is making sure that you can manage any high interest debts you have.

In purely financial terms, deciding whether to pay off a debt, or to start saving regularly, is clear cut:

If you're paying more interest on your loan or debt than you're earning on your savings, it makes sense to pay off the debt first.

For example, if you have savings in an account earning 2% interest, and you have store card debt that you're paying 19% interest on, it may be sensible to pay off the store card debt first, before putting money into the savings account. 

However, this isn't a rule that applies to every situation. For example, mortgages, and certain loans, have fixed repayment terms that are not negotiable. If possible, you should try and build up savings in addition to making those payments. 

There are 3 key things to consider:

Interest rate

If you have high interest debt, such as payday loans and store cards, these should usually be your number one priority. If you have several debts, it's typically best to prioritise the ones charging the highest interest rates first.

Unexpected costs

It may be sensible to build up an emergency savings fund, to cover unexpected costs, before focusing on paying down other debt.

Early repayments and break fees

Certain loans and borrowing come with penalties or fees if you pay them back early. You should check the terms of any borrowing carefully before opting for an early repayment.

A blended approach could make sense. Referring to the example above, you might:

tackle high interest debt first, like store cards and payday loans

build an emergency savings fund next, to meet unexpected costs like home repairs or losing your job

get into a savings habit by putting a regular amount each month into a savings account

make a plan to pay off lower interest, longer term debts

plan longer term savings to meet your financial goals

网址：Save? or pay off debt? https://www.yuejiaxmz.com/news/view/1181187

相关内容

Savings strategies for life
旅行高手旅游省钱的大绝招!（Travel expertmajor skills to save money!）
如何应对家庭生活中的经济暴力
How to Get Out of Debt, Stay Out of Debt, and Live Prosperously 如何摆脱债务 远离债务 积极生活 个人理财 Jerrold Mundis
9个可以帮助你长期省钱的小技巧
Stay financially healthy
如何节约能源英语作文10篇
Plan your finances for parenthood
绿色环保低碳生活的英语作文（通用17篇）
马上就能实践的30个省钱妙招

随便看看