Save money or pay off debt?

Advice

I would recommend that you clear the credit card debt only if you are paying interest on the cards. If you are in a 0% period then use some to pay off a small portion and the rest try and save. Many payday loans sites have finance blogs attached so look online for financial advice around your next move.

Re: Save money or pay off debt?

Good news that after a mild recession in March-November 2001, the U.S. economy resumed expanding, through administration of Obama.One of the biggest monthly expenses for anyone, after mortgage or rent, is energy costs. There are certainly a lot of ways to start saving money on the electric bill. For one, look into Energy Star rated appliances – they use less energy and you can get a tax write off. (It might take some payday loans to replace all appliances, or you can just budget for it and replace as you go.) Another thing is to get an HVAC inspection, and fix any leaks. A programmable thermostat can save you about $100 a year, and insulate all doors or windows, as those are your biggest leaks in heating or cooling.

Baby Steps

I agree with duc. A couple of things to add:

If you have multiple cards, don't get caught up on interest rates when determining which to pay off first. Start with the smallest. Paying off the first card is a huge accomplishment and will help to keep you motivated.

Also, continue to pay the minimum payment on your other cards.

Check out: http://www.daveramsey.com/new/baby-steps/

Pay off or save?

Congratulations on taking the first step! You didn't say whether you had a budget or spending plan yet, but creating one will show where your money goes, and where you can make adjustments to pay down debt. If you're earning 1 percent in savings, but paying 22 percent on credit, it makes sense to get those balances down. And it's a good step for your future credit rating, as FICO scores are now increasingly concentrating on debt utilization. So . . . Make a budget, Set down a plan for paying down debt, follow it, and set aside a small amount into savings. Even 1 or 2 percent is more than 0! Once you pay off that debt, take the amount you were spending on payments and plow it into savings. This site has calculators to help you figure out your plan. Good luck!

Pay debt or save?

Since you are basically just starting out you are in a good position. My suggestion is follow Dave Ramsey's Seven Baby Steps. It is a great program and has been successful for many. Before beginning the program, cut up the credit cards, if they are not in your wallet you cannot use them. Look at your spending, decide what you can and can't do without. Setup a monthly budget, at the beginning of the month you have a plan for that month’s income. As the money comes in you have already assigned a place for it to go. This will keep you from having money sitting around burning a hole in your posket. If you need clothes, or want to buy somthing that is not in the budget, it becomes part of next months budget. Try to cut back on bad habits: eating out, buying soda or bottled water, smoking, $5 lattes, etc. Becoming financially secure is like a diet, there are many methods of losing the weight, but in the end you have to have a plan that works for you and you are will to stick with. In the end it is a lifestyle change. Good luck and congratulations on making this decision.

Step 1-$1,000 In An Emergency Fund, this is not used to buy clothes, it is there for Emergencies, Unexpected expenses that you did not budget for.
Step 2-Pay Off All Debt With The Debt Snowball, Starting with the smallest balance.
Step 3-3 To 6 Months Expenses In Savings
Step 4-Invest 15% Of Income Into Roth IRAs, and Pre-Tax Retirement Plans
Step 5-Start a College Fund for your kids, even if you do not have them yet.
Step 6-Pay off your home early.
Step 7-Build Wealth.

Pay debt or save?

Hello! For what it's worth, I would recommend paying off the debt asap. But, also put some into savings. Even if it's 1 or 2 percent of your income, it will get you started on the right road.