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Dont Save When You Are in Debt.
 People are peculiar animals. We don't always do whats best for us - rather, we do what feels best, and try to blot out any reasons why it may not be the right thing to do. Maybe that's how come there are so many people who have both savings and debts.
Its a Matter of Psychology.
Sure, it feels better to save. Saving feels like you're constructing 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 future, or for doing up your place of residence, or whatever else - and it's in an bank account gaining a useful rate of interest. What could be wrong with that? A great deal, if you owe money.
Dont Be Fooled.
There are about no savings companies that offer interest rates as high as the ones credit cards take from you. Heres food for thought: 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 cash do you have? After only five years, the answer is effectively zero - your debt would have grown to in the area of $12,500, the equivalent amount that your savings are now worth.
You may not imagine it currently, but it actually is a lot better to pay off your debt. If you utilised half your savings to pay off that debt, youd be in a much better situation that it's really astonishing. You avoid five years of compound interest on the debt, but you still get to keep $5,000 in your savings account, bringing 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?
Think of Your Financial Health.
When you have enough cash to pay off your debt, theres absolutely no earthly 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 want as much of your finances as possible to be savings, not debts. If your savings account and credit card are with the same savings bank, then youre in effect paying for the privilege of borrowing your own money from them. Why on earth would you do that?
There are more advantages to lowering your debt using your own savings. Youll be less stressed about your debts, and your credit statement will show that you were able to pay everything back - getting you a much smaller interest deal if you should need to go into debt in the future.
I know it's hard. You just need to be mindful that any money you've saved hasnt really been saved at all. Its money you should 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 future - but always bear in mind that whenever 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 those savings have already been spent - stop denying it to yourself.
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