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Dont Save When You Are in Debt.
 Human beings are curious 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 best thing to do. Perhaps that's why there are so many people who have both savings and debts.
Its a Matter of Psychology.
Sure, it feels better to have savings. Saving feels like you're constructing a base for your future, whilst paying off debt makes you feel like you're giving your 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 bringing in a useful rate of interest. What can be wrong with that? Lots, if you are in debt.
Dont Be Fooled.
There are just about no savings companies that offer interest rates as high as the ones credit cards wrest from you. Heres something to consider: if you have $10,000 in a bank account making 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 zero - what you owe would have grown to around $12,500, the equal amount that your savings are currently worth.
You might not believe it at present, but it actually is a great deal better to pay off your debt. If you used 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 hang on to $5,000 in your savings account, making 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 hard cash?
Think of Your Financial Health.
When you have 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 need 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 cash from them. Why would you do that?
There are other benefit's to lowering 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 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 actually 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 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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