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Dont Save When You Owe Money.
 Humans are curious animals. We don't always do whats best for us - rather, we do what feels best, and try to wipe out any reasons why it might not be the soundest thing to do. Maybe that's why there are so many people who have both savings and debts.
Its a Matter of Psychology.
Yes, it makes you feel better to have savings. Saving feels like you're building a foundation for your future, while paying off your debts makes you feel like you're giving your cash down a hole. That money is for the kids future, or for doing up your house, or whatever else - and it's in an savings account realizing a valuable rate of interest. What can be wrong with that? Lots, if you are in debt.
Dont Be Fooled.
There are virtually no savings accounts that offer interest rates anywhere near as high as the ones credit cards take from you. Heres something to consider: if you have $10,000 in a savings account bringing in 5% a year and $5,000 on a credit card at an interest rate of 20% per year, how much cash do you have? After just five years, the answer is effectively nada - what you owe would have grown to as much as $12,500, the equivalent total that your savings are currently worth.
You may not believe it currently, but it actually is much better to pay off your owings. If you utilized one half of your savings to pay off that debt, youd be in a much better spot that it's truly astounding. You avert five years of compound interest on the debt, but you still get to hang on to $5,000 in your bank account, pulling in interest - after five years, that's about $6,380.
If youd still rather keep your savings intact instead of using them to pay off your debts, ask yourself this simple question: is your pride worth $6,380 of your familys hard cash?
Think of Your Financial Well-being.
When you get sufficient 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 banking company, then youre in effect paying for the privilege of borrowing your own cash from them. Why on earth would you do that?
There are other advantages to paying off your debt using your own money. Youll be less stressed about your debts, and your credit statement will show that you were able to pay everything back - resulting in getting you a much better interest deal if you ever have to go into debt in the future.
I know it's hard. You just have to bear in mind that any cash you've saved hasnt really been saved at all. Its money you should have been spending instead of buying with a credit card. Yes, it feels much worse to spend money thinking that youre spending away your nest egg - but always remember that when you use a credit card to spend that same amount of money, youre spending away your future, plus interest. In any case, if you've got the debt, then that money has already been spent - stop denying it to yourself.
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