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Dont Save When You Owe Money.
 Human beings are peculiar animals. We don't always do whats right for us - instead, we do what feels best, and try to blank out any reasons why it may not be the soundest thing to do. Maybe that's the reason there are so many people who have both savings and debts.
Its an Issue of Psychology.
Sure, it makes you feel better to save. Saving makes you feel like you're building a base for your future, while paying off what you owe 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 bank account making a valuable rate of interest. What could be wrong with that? Lots, if you have debts.
Dont Be Fooled.
There are just about no savings companies that will offer you interest rates as high as the ones credit cards take from you. Heres something to think about: if you have $10,000 in a bank 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 only five years, the answer is effectively nothing - your owings would have grown to around $12,500, the equal amount that your savings are now worth.
You may not imagine it now, but it really is a lot 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 really astounding. You avoid five years of compound interest on the debt, but you still get to hang on to $5,000 in your savings account, bringing in interest - after five years, that's about $6,380.
If youd still prefer to keep your savings intact rather than using them to pay off your debts, ask yourself this elementary question: is your pride worth $6,380 of your familys hard cash?
Think of Your Financial Health.
Once you have sufficient money to pay off your debt, theres absolutely no reason on earth to hang on to it. Debt is for people who don't have the money, and need to borrow it. Debt costs money, and savings make money - you need as much of your finances as possible to be savings, not debts. If your savings account and credit card are with the same banking company, then youre effectively paying for the privilege of borrowing your own money from them. Why would you do that?
There are additional benefit's to paying off your debt using your own money. Youll be less worried 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 should need to go into debt again.
I know it's hard. You just have to be mindful 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 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 when 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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