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Dont Save When You Are in Debt.
 People are curious creatures. We don't always do whats best for us - instead, we do what feels best, and try to blot out any reasons why it may not be the best 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 have savings. Saving feels like you're building a cornerstone for your future, whilst paying off your debts makes you feel like you're throwing your money into a hole. That money is for the kids education, or for improving your house, or whatever else - and it's in an bank account realizing a good rate of interest. What can be unreasonable about that? A great deal, if you are in debt.
Dont Be Fooled.
There are virtually no savings institutions that will offer you 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 bank account pulling in 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 zilch - what you owe would have grown to about $12,500, the equivalent sum that your savings are now worth.
You might not believe it now, but it really is much better to pay off your owings. If you used one half of your savings to pay off that debt, youd be in such a better spot that it's truly awesome. You avert five years of compound interest on the debt, but you still get to keep $5,000 in your savings 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 Well-being.
When you get enough money to pay off your debt, theres absolutely no earthly 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 finances as possible to be savings, not debts. If your savings account and credit card are with the same financial institution, then youre in effect paying for the privilege of borrowing your own money from them. Why would you do that?
There are additional advantages to lowering your debt with 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 better interest deal if you should have to go into debt in the future.
I know it can be hard. You just need to be mindful that any money you've saved hasnt actually been saved at all. Its money you ought to have been spending rather than making purchases 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 money, youre spending away your future, plus interest. In any event, if you've got the debt, then those savings have already been spent - stop denying it to yourself.
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