Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
Kljhnsn

0 Contributions
0 People Helped
is it better to keep a savings or pay off debt first?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
62 Contributions
3 People Helped

This can only be decide by you. If you're planning to make any huge purchases and need a high credit score, pay off the debt. Also if any of your debt is nearing the 7 years, don't pay and let it be drop from the report. By paying, it may be on your report for another 7 years unless you have it in writing to Paid In Full for Deletion.

Top Contributor
7371 Contributions
3810 People Helped

Ideally, both.

The reason being, it is very smart to have at least 6 months equivalent of your normal living expenses saved up for that "rainy day".  But, since savings accounts don't pay much interest and credit cards charge higher rates than you can get for savings, getting rid of the debt as fast as possible saves plenty of money. Then strive to pay the credit card bills in full when they come in every month.

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.