Should you be focused on paying off your debt or saving for the future?

If you have multiple forms of debt (i.e. student loans, credit card bills, etc.), they likely have various interest rates and repayment periods, so it is helpful to develop a strategy to pay it off. As you develop your repayment and savings plans, it may be useful to look into the following topics: interest rates, ways to both save and pay down debt, and when to start thinking about retirement.

Interest Rates

Pay attention to what type of debt you’re taking on. Credit cards tend to have very high-interest rates while student loans and mortgages have lower interest rates.

If the interest you are paying on the money you owe, is higher than the interest you are receiving on the money you save, you should try to focus on paying off that debt as quickly as possible.

Double Dipping

If you don’t have enough savings, remember 3 -6 months of expenses is ideal. It is important to begin an emergency fund as you pay down your debt.

You can achieve this by making at least minimum payments on your low-interest debt, while setting aside a small amount each month for your emergency fund.

Once your emergency fund reaches its target amount, you can begin making larger payments towards the debt.

Investing in You

Early on in your career, retirement may seem far away but the earlier you start saving the better off you’ll be in the future.

Take advantage of any employer match rates and keep in mind, some retirement plans allow you to make tax-deductible contributions, which could increase savings.

Unfortunately, there isn’t a straightforward answer for which to prioritize, debt or savings, and the solution often changes as your circumstances evolve.

To learn more, the article link below, “Pay Down Debt or Save,” provides key points that could help you make a more informed decision.

Pay Down Debt or Save?

Written by Nnenna Elumogo

I became a wealth management advisor to demystify finance, investing and wealth generation for hard-working professionals. I am passionate about providing education, insights and advice to families and dedicated to helping them determine and work toward their long term financial goals. I aim to help professionals save time, make more informed financial decisions and drive progress.


Prior to working as a wealth management advisor, I was an accountant specializing in corporate tax of companies in the automotive and information technology sectors.


I have a bachelor’s degree in International Relations from Emory University and an MBA in Finance from New York University.