Should I save money or pay off my debt first?
Spare £200 a month. Do you throw it at your debt, or save it?
The simple version
Compare two rates: what your debt charges you, and what your savings pay you. Paying off a 24.9% debt is like earning a guaranteed 24.9% — no savings account comes close.
The one exception
Keep a small buffer first — even £500–£1,000. Without it, one surprise bill goes straight back on the card.
Your net position = savings minus debt, after 12 months.
After 12 months
Pay debt first
-£564
net position
Saved £520
Owe £1,084
Better by £219
Save first
-£783
net position
Saved £2,964
Owe £3,747
Key takeaway
Buffer first, then attack the debt with the highest rate. Once it's gone, redirect that same payment into savings.
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