I've heard that you should always pay your debts down before saving anything. Is that true? For example, if you have a bunch of student loans, should you pay those off before starting a savings account?
- Jane
Dear Jane,
Sure, from a basic math standpoint, it would make sense to pay off all debt before beginning a savings plan. After all, lenders add finance fees to an amount owed, so you're losing money when you hang on to balances. That's especially true considering how low interest rates are on savings and how high they can be on loans