About · Press · Contact · Write For Us · Top Personal Finance Blogs
Featured In:

Great Reader Comments About Saving Versus Paying Off Debt

By Erik Folgate

Craig and Blaine, Money Crasher readers wrote in response to my post about Paying Off Debt and Saving For the Future At The Same Time.

Blaine Wrote:

We are on one income while my wife is in law school, and still manage to build up our emergency fund and make extra payments against our mortgage and save for retirement.

We aren’t very good about the whole budgeting bit; we just try not to spend more than we have to and keep ourselves too busy to buy random junk.

Craig Wrote:

We’re a dual income family that subscribes to the second school of thought. We prioritize retirement and both max out ($15,500) every year. Then we prioritize college savings for our toddlers ($1,200/month), then the rainy day fund ($250) month, then whatever little is left after life’s necessities (i.e. mortgage, groceries, bills), we try to have some fun with it. We don’t carry credit card debt, with the exception of a loan we converted from home equity to get a 1.9% rate. We always pay the minimum and usually try to chip away at it with an extra $100/month even though we could earn more by investing that cash. That’s purely for psychological reasons – we don’t really want to carry the credit card debt for 7 years, even though it’s only at a 1.9% rate.

I am warming up to the idea that there are multiple ways to approach the debate over saving first or paying off debt first. My post was about the possibility of being able to do both if your financial situation is favorable to doing it. I think you are on the right track as long as you are consciously making an effort to make goals for saving AND paying off debt. You can’t save like crazy, but rack up crazy amounts of debt, and likewise, you can’t pay off all of your debt, and then never save a dime.

Erik Folgate
Erik and his wife, Lindzee, live in Orlando, Florida with a baby boy on the way. Erik works as an account manager for a marketing company, and considers counseling friends, family and the readers of Money Crashers his personal ministry to others. Erik became passionate about personal finance and helping others make wise financial decisions after racking up over $20k in credit card and student loan debt within the first two years of college.

Related Articles

  • Minimum Wage

    Not Found

    Sorry, but you are looking for something that isn’t here.

    Okay, I give up. Where is it?

  • Minimum Wage

    Financial Question Of The Day #3 (1 click)
    From Money Crashers – view blog entries – visit this blog
    December 17, 2007 at 11:14 pm ET
    What is your favorite giving memory? Such as, a time when you gave something to someone or received something from someone. My favorite giving memory is definitely the trip that I took to Ecuador in … (more)

    This is what isn’t here.

The content on MoneyCrashers.com is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor. References to products, offers, and rates from third party sites often change. While we do our best to keep these updated, numbers stated on this site may differ from actual numbers. We may have financial relationships with some of the companies mentioned on this website. Among other things, we may receive free products, services, and/or monetary compensation in exchange for featured placement of sponsored products or services. We strive to write accurate and genuine reviews and articles, and all views and opinions expressed are solely those of the authors.

Advertiser Disclosure: The offers that appear on this site are from credit card companies from which MoneyCrashers.com receives compensation. This compensation may impact how and where products appear on this site, including, for example, the order in which they appear on category pages. MoneyCrashers.com does not include all credit card companies or all available credit card offers, although best efforts are made to include a comprehensive list of offers regardless of compensation. Advertiser partners include American Express, U.S. Bank, and Barclaycard, among others.