Should I open a savings account or pay down debt

Which strategy is a more productive use of income – paying down debt or building up savings?

Debt usually has a higher interest rate than savings. Consumer debt often has very high rates so paying off credit cards and personal loans as soon as possible is usually advisable, according to most financial counsellors.

However many experts recommend that everyone should keep a savings account for emergencies or for expenses like holidays that are best paid for upfront, rather than on credit.

Source: Bankheadlines.com.au

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