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Dont Save When You Have Debt.
 Humans are peculiar animals. We don't always do whats right for us - rather, we do what feels best, and try to wipe out any reasons why it might not be the soundest thing to do. Maybe that's the reason there are so many people who have both savings and debts.
Its a Matter of Psychology.
Yes, it feels better to save. Saving feels like you're constructing a cornerstone for your future, while paying off what you owe feels like you're giving your money in to a hole. That money is for the kids education, or for doing up your house, or whatever else - and it's in an account realizing a good rate of interest. What could be unreasonable about that? A great deal, if you are in debt.
Dont Be Fooled.
There are virtually no savings accounts that will give you interest rates as high as the ones credit cards take from you. Heres a question: if you have $10,000 in a savings 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 just five years, the answer is effectively zilch - what you owe would have grown to about $12,500, the same sum that your savings are currently worth.
You may not think it at present, but it actually is a great deal better to pay off your debts. If you utilised one half of your savings to pay off that debt, youd be in a much better spot 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, pulling in interest - after five years, that's about $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 money?
Consider Your Financial Health.
Once you get sufficient cash 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 financial resources as possible to be savings, not debts. If your savings account and credit card are with the same bank, 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 with your own savings. Youll be less strained about your debts, and your credit report will show that you were able to pay everything back - getting you a much smaller interest deal if you should have to go into debt again.
I know it's hard. You just need 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 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 event, if you've got the debt, then those savings have already been spent - stop denying it to yourself.
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