What is more important for financial success: saving or paying off debt?

Debt is not bad as long as you are making regular payments . While you are making payments , you increase your credit and will be able to borrow more money to buy the house . Now , you will most likely have to have $ 5000 - $ 10,000 to put the house depending on your credit , but it could be more than could be nothing , but you can always check with a banker to see where you stand right now. Go anywhere you have your bank and talk to someone at a desk and are always more than willing to help , but will advise on what to do and can even tell you what your credit is and how much he had be able to borrow , etc. .. MedlinePlus MedlinePlus There is also a thing called the time value of money . The theory is $ 1000 today is worth more than a $ 1,000 tomorrow because you can invest that money and make a profit today for tomorrow . While your debt may be costing your interest, you may be able to get more benefits of investing money in a money market account or CD or something. MedlinePlus MedlinePlus As I said , this is an important thing for your life and it's great that you are thinking about it so take an hour of your day and go see a banker . Try to go during the hours that are not occupied so they do not feel they are losing the time they are with you or you do not have to wait an hour to see one . Early morning , lunchtime (which can disappear at lunch or the bank may be busy all the banking world of getting done in your lunch hour ) and the times are worse at night. 9:30 to 11:30 and 1:30 to 4:30 should be a great time to go . MedlinePlus MedlinePlus Good luck

1. Saving for retirement MedlinePlus 2. Except in emergencies MedlinePlus 3. Except needs MedlinePlus 4. MedlinePlus pay debt 5. Save for investments MedlinePlus 6. Except luxuries ( wants ) .

Cash is king. What I do is make sure that the credit card balance is less than 50 % of the limit and put the rest in the bank . That way your credit score will go up and you 'll have some money liquid for anything you need . I would also put their bonds in a short-term investment so that it is working for you .

I would pay the debt. Debt cost. If you have no debt ( payments ) , then you can put that money for retirement . Even if you have a low interest rate is better to get rid of it because you never know what can happen in the future. MedlinePlus MedlinePlus daveramsey.com has lots of good advice on money and debt. go to their website and listen to his radio show or find a station near you that you can hear . It's just common sense.

the answer to your question is quite simple.

you should allocate the extra money based on what makes sense when you consider interest rates.

example: say you have a $500 balance on a credit card with a 14% interest rate. would it make sense to put your bonus check into a money market fund that earns 6% interest? hardly.

you should always start by paying off high-interest rate credit cards to avoid finance charges.