Something on credit card debt debt consolidation dissolveyourdebt com
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Dont Save When You Are in Debt.
 People are curious creatures. 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 most effective thing to do. Perhaps that's how come there are so many people who have both savings and debts.
Its a Matter of Psychology.
Yes, it feels better to save. Saving makes you feel like you're building a foundation for your future, whilst paying off debt makes you feel like you're giving your money in to a hole. That money is for the kids future, or for doing up your home, or whatever else - and it's in an account pulling in a good rate of interest. What could be unreasonable about that? Lots, if you have debts.
Dont Be Fooled.
There are almost no savings institutions that will offer you interest rates as high as the ones credit cards take from you. Heres something to consider: if you have $10,000 in a bank account making 5% per year and $5,000 on a credit card at an interest rate of 20% per year, how much hard cash do you have? After only five years, the answer is effectively zero - what you owe would have grown to as much as $12,500, the equivalent sum of money that your savings are currently worth.
You might not think it currently, but it actually is a good deal better to pay off your debt. If you utilised half your savings to pay off that debt, youd be in such a better position that it's really amazing. You avoid five years of compound interest on the debt, but you still get to hang on to $5,000 in your bank account, earning interest - after five years, that's approximately $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?
Think of Your Financial Well-being.
When you get enough money to pay off your debt, theres absolutely no logical reason to keep it. Debt is for people who don't have the money, and have to borrow it. Debt costs money, and savings make money - you need 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 on earth would you do that?
There are more advantages to lowering your debt with your own savings. Youll be less stressed about your debts, and your credit report will show that you were able to pay everything back - resulting in getting you a much smaller interest deal if you ever need to go into debt again.
I know it's hard. You just have to bear in mind that any money you've saved hasnt really been saved at all. Its money you ought to have been spending as an alternative to buying things with a credit card. Yes, it feels much worse to spend money thinking that youre spending away your nest egg - but always bear in mind that when you use a credit card to spend that same amount of money, youre spending away your future, plus interest. In any event, 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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