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Dont Save When You Have Debt.
 Humans are funny animals. We don't always do whats right for us - instead, we do what feels best, and try to wipe out any reasons why it might not be the soundest thing to do. Perhaps that's why there are so many people who have both savings and debts.
Its an Issue of Psychology.
Yes, it feels better to save. Saving feels like you're constructing a cornerstone for your future, while paying off debt feels like you're giving your hard cash down a hole. That money is for the kids education, or for improving your place of residence, or whatever else - and it's in an savings account realising a good rate of interest. What could be unreasonable about that? A great deal, if you are in debt.
Dont Be Fooled.
There are virtually no savings companies that offer interest rates as high as the ones credit cards charge. Heres something to think about: if you have $10,000 in a bank account realizing 5% a year and $5,000 on a credit card at an interest rate of 20% per year, how much money do you have? After just five years, the answer is effectively zilch - your owings would have grown to in the area of $12,500, the same amount of money that your savings are now worth.
You might not imagine it at present, but it really is a lot better to pay off your debts. If you utilised one half of your savings to pay off that debt, youd be in a much better situation that it's truly amazing. You avoid five years of compound interest on the debt, but you still get to keep $5,000 in your bank account, pulling in interest - after five years, that's more or less $6,380.
If youd still rather keep your savings intact instead of using them to pay off your debts, ask yourself this elementary question: is your pride worth $6,380 of your familys cash?
Consider Your Financial Health.
When you get enough money to pay off your debt, theres absolutely no reason to hang on to it. Debt is for people who don't have the money, and have to borrow it. Debt costs money, and savings make money - you want as much of your financial resources as possible to be savings, not debts. If your savings account and credit card are with the same savings bank, then youre effectively paying for the privilege of borrowing your own cash from them. Why would you do that?
There are more benefit's to paying off your debt using your own savings. Youll be less worried about your debts, and your credit report will show that you were able to pay everything back - getting you a much smaller interest rate if you ever need to go into debt again.
I know it's hard. You just have to be mindful that any cash you've saved hasnt actually been saved at all. Its money you ought to have been spending instead of buying things with a credit card. Yes, it feels much worse to spend money thinking that youre spending away your children's education - but always remember that whenever you use a credit card to spend that same money, youre spending away your future, plus interest. Anyway, if you've got the debt, then that cash in the bank has already been spent - stop denying it to yourself.
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