Money Smarts Blog

Pay Off Debt or Save? You Can Do Both!

Jan 9, 2023 || Heather Diehl, Marketing Strategist

women wearing orange top thinking with a pink background

Debt can be overwhelming but so can an empty savings account right when you need money the most. It’s a chicken or the egg situation: Should you pay down debt, or should you save? The goal is to find a balance where you can become debt-free and still stash some cash for a rainy day.

I talked with one of our Financial Coaches and came up with an awesome flow chart based on their advice (we love our visuals in marketing!).

chart about the different options for saving or paying off debt

Questions or concerns? Reach out to a Financial Coach at IHMVCU. They’re here to help you reach your goals.

Can you save and pare down your debt at the same time? YES.

Ideally, you’re going to want to pay off debt and save. The key is to make sure you have a debt repayment strategy that’ll work for the type of debt you have (student loans, credit cards, etc.) while making contributions to your savings. Find a balance that works for you and know that it’s OK to start small.

BONUS CONTENT: How to Pay Your Bills and Still Have A Life

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