It is better to save money or pay off all your bills?

Jump to Last Post 1-12 of 12 discussions (12 posts)
  1. Special Kay profile image56
    Special Kayposted 7 years ago

    It is better to save money or pay off all your bills?

  2. Writerly Yours profile image75
    Writerly Yoursposted 7 years ago

    I chose to pay off my bills so that I can save more in the future. It's not the way everyone should go, but do what works for you.

    I can't see myself owing and trying to save at the same time. It just didn't make sense to me so we chose to pay things off big and fast and then that freed us up faster to start saving better.

    Hope that helps.

    Thanks.

  3. kittythedreamer profile image98
    kittythedreamerposted 7 years ago

    I think Writerly Yours has a good point. For me though, I try to pay off my bills one by one, in the meantime saving what I can here and there. It really depends on your situation and what types of bills you are paying.

  4. lburmaster profile image83
    lburmasterposted 7 years ago

    Pay off your bills, hands down. Not only is paying off your bills good so you can save later. You are also helping your credit score by getting rid of them so you can spend more later.

  5. profile image0
    Marie Brannonposted 7 years ago

    Depends on the bills.  If you are paying a credit card off at, say, 12.99%, and your savings account only pays you .02%, that's a no-brainer.  Use all you discretionary income to pay off the credit card.

    If you have some other kind of debt, consider the interest rate and the savings rate the same way.  We have a 6% mortgage and a 4% annunity.  It worked for us.

  6. CWanamaker profile image97
    CWanamakerposted 7 years ago

    Marie Brannon is correct, however you have to keep in mind the rate of inflation.  As the value of the dollar decreases and things cost more, your debt will shrink (relatively speaking) over time anyways. For example, you take out a $50,000 loan in 1990. Twenty years later, that same 50k doesn't buy you as much stuff as it did back then. Therefore your debt is already relatively smaller than it was when you acquired it.  This all depends too on the interest rates versus the rate of inflation

    This also means that the cash you have on hand now is worth less in the future.  A savings account may not match the rate of inflation, but it at least preserves some of the the value that might have been lost.  In fact there are very few investments that match or exceed the rate of inflation.

    With that said, and noting I'm not a financial adviser, I would: Pay off credit cards (the interest rate here is higher than the inflation rate) first followed by starting some savings/ emergency fund accounts.  Low interest (where the interest rate is less than that of the inflation rate) debts such as cars, student loans, and homes, should be paid off after you have some money in savings.

  7. duffsmom profile image59
    duffsmomposted 7 years ago

    You need to do both.  Bills such as credit card bills need to be paid off and NOT run up again.  But still save even as little as $5.00 if possible.

    Pay off one card, then add that payment to the amount you pay on the second card and before you know it, you will have even more to put in the savings.

    The reason you need to save at the same time is that once in a while (too often actually) emergencies come up--for example a flat tire that needs repair.  If you have some savings, you can use it and NOT end up putting the repair on a credit card again.

  8. profile image0
    rorshak sobchakposted 7 years ago

    You should pay off your bills first then save. It is very important to pay your bills.

    check out this hub.
    http://hubpages.com/hub/goodcreditspend … tsdebtfree

  9. profile image44
    debbyrayposted 7 years ago

    It is better to save money or pay off all your bills?

    Im Mrs.Deborah Ray from Atlanta.i know how it feels like to be in stress.I needed a loan badly as a single parents when i lost my husband in an auto crash.I needed this money for the Purpose of business.i could not find anyone,not until a friend directed me to UK NATION loans.i was granted 55,000 Pounds without stress.since then i have promised to advertise for them.If you are in need of urgent finance get to them on ukloanslimited@live.com here is their number +4470359 03933

  10. jacqui2011 profile image81
    jacqui2011posted 7 years ago

    Everyone's circumstances are different, but for me I chose to pay off my bills one by one. By my calculations, I hope to have everything paid off by October (if my plan works out!) and then I can concentrate on trying to save some money each month from then on.

  11. scauthor1969 profile image80
    scauthor1969posted 7 years ago

    I think it is best to save a small emergency fund so that when issues come up you do not have to borrow money again. Then go and pay off your bills one at a time until you are debt free. The Dave Ramsey method.

  12. SpiffyD profile image83
    SpiffyDposted 7 years ago

    That depends on the relative interest rates. For high-interest debt, paying that off could be better. After all the effect of 12% on debt cannot be outweighed by 4% savings. However, remember that the compounding interest effect works better over a longer period. Therefore, it is ideal to pay off all short-term, high-interest debt as soon as possible, but don't hasten to reduce long-term debts like mortgages if you are comfortable with the monthly payments. Sometimes, deciding which to do can involve the concept of opportunity cost.

 
working

This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

Show Details
Necessary
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
Features
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Marketing
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Statistics
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)