Texas Trust Money Management Advice

Money Management

Save or Pay Off Debt?

Having savings is important, especially when the savings are part of an emergency fund or a hedge against loss of income. But when you also have debt, in the form of an outstanding credit card balance or loan, you might want to consider whether you're better off using the money you have in savings to pay down debt. Whether it makes sense or not is determined by the interest rate you're earning on your savings versus the interest rate you're being charged on your outstanding loan balance. The difference between earning interest and paying it should give you a good indication of where you can get the best return.

Please note, information and interactive calculators are made available to you as self-help tools for your independent use and are intended for illustrative purposes only. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.