Comments on: Reduce Debt or Save Money

By: Ross

Ross — Tue, 23 Mar 2010 11:30:15 +0000

I never had the slightest doubt that getting rid of my home mortgage was a first priority. Paying interest on my home loan was simply a dead waste of valuable income. Once the mortgage was eliminated then REAL saving & investing commenced.

Here in Australia we do not receive any tax breaks for paying interest on a home mortgage so paying such interest is a waste.

Thanks for the inforamtive post.
.-= Ross´s last blog ..Why Temptation Wrecks Your Monthly Budget Spreadsheet =-.

By: Damon Day

Damon Day — Mon, 05 Oct 2009 05:15:05 +0000

Great post Miranda,

It is a question that is often asked and of course the answer depends entirely on the individual and the situation as you aptly pointed out. I agree with Ben, that the best thing to do is start. Don’t waste time agonizing over it. Even if it is seemingly a very small amount, just start saving some and apply more toward your debt.

Everyone can always cut out something. It is just a matter of making tough choices and paying yourself first. Maybe you can’t afford 200 cable channels and should cut down to the starter package. I agree that easily 10% to 15% of most family budgets are spent on either outright waste or things that they don’t really need to have. For most families, they are just not realistically making it a priority to save money or pay down debt
.-= Damon Day´s last blog ..Debt Help – Who can You Trust =-.

By: Coles Myer

Coles Myer — Thu, 27 Aug 2009 00:30:28 +0000

I need to save as much money as I can so that when I pay all of my debts I will still have money to spend. Nice job on this post.

By: Accountancy Firms London

Accountancy Firms London — Fri, 14 Aug 2009 16:14:39 +0000

I would always first cut debt out the way, because while your saving your debt is earning interest, so pretty much pointless. Good post dude.

By: Mack jackson

Mack jackson — Fri, 10 Jul 2009 07:04:22 +0000

Thanks for sharing such great post, it will surely help many people to get such detailed info. According to me there are some chances of unexpected expenses for which you need some amount of money so for that saving is very much essential.

By: Kiten

Kiten — Mon, 29 Jun 2009 13:13:49 +0000

I agree with you too.

By: Franco

Franco — Tue, 16 Jun 2009 17:49:32 +0000

Countries like Argentina don’t allow debt, and I believe it really helps their economy. Other countries are not that lucky, mostly Americans are totally relying on debt, not a healthy economy

By: Mr. Insurance

Mr. Insurance — Mon, 15 Jun 2009 20:31:48 +0000

Debt, the thing that can destroy a country. I always wondered why countries allow debt in the first place? What do you think?

By: Rick Vaughn

Rick Vaughn — Sun, 29 Mar 2009 18:03:58 +0000

Miranda,This is critical question in almost every budget. I would lean towards saving money first. Even if it's 10 dollars a pay check. The reason being if it's down to the end of the money and you need gas in the car its better to have $10 cash then pay the interest on $10. Hope that makes sense?Rick Vaughn’s last blog post..Understand Credit Repair Properly

By: jeflin

jeflin — Tue, 17 Mar 2009 11:09:46 +0000

There are good debts and bad debts so if you are hard up on cash, keep the good debt. However, if you have savings and the money is not working for you (as in lying under your mattress), then clear off all debts.