It’s a dilemma many Americans face: should you pay off debt or focus on saving? If credit card bills are piling up fast, you may think saving for the future is out of the question. With a plan in place, it’s possible to pay off debt and build savings at the same time.
A major step in reducing debt includes creating a budget and cutting expenses, which should leave you with more funds to apply toward your bills. It’s not necessary to bar all luxuries from your life. Instead, think of practical ways to save money. When paying off debt, it’s important to avoid placing more items on credit. If you want to reduce debt faster, make payments that exceed the minimum amount.
Trimming expenses can also leave you with more money to save. After paying your monthly credit card bills, put aside as much money as possible. You’ll have peace of mind knowing that an emergency fund is available should you need it. By focusing on a dual strategy, you’ll decrease debt, and with money saved, you won’t need to rely on credit.