Should I start saving money while I still have debts, or should I pay these off first?

Check out the interest rates on the debts you have then select the dearest or highest rate and and clear that one first gradually working your way down.

always repay the debts first, then start saving. The reason being the debts usually have a higher rate of interest than the savings accounts. though it would do no harm to squirrel away a small amount each month and give yourself a treat when the debts have been repaid!

Simple and straightforward answer is to definitely pay off all debts first and foremost(normally exclluding mortgage) before making consistent savings for the future.Interest can be a real scourge and eventually, if you are not careful,the cost of interest alone may be even more than the cost of the original loan.

at the moment interest rates are really low, and unlikely to be this low again. pay off your debts first as there is no value in saving at the moment, plus debts are charged at a higher rate more often. also it will improve your credit rating meaning you can get better accounts in the future!

i would take the smallest debt first and pay that off then take each one after and do the same, it is not worth saving if you have debts

I agree with those saying that you should pay off your debts now.

I don't budget for saving. I pay off my debt with every spare bit of money I make from my salary and overtime. However, if I get any small amounts of money during the month (for example, gifts or payments from survey sites) then I treat that as unexpected money and put it into my savings account. I'm not saving for anything in particular, but want an account full of savings just for the future. If I never use it, it's always going to be there for me.

My frame of mind has always been that as long as I owe money to anyone then whatever money I have in my hand or bank is not actually mine at all. For that reason alone I would (and did) pay off all debts completely and then start saving.

Hmm...everybody is more or less saying the same thing - pay of the most expensive debt first. Definitely.

But there is another take on 'saving'. What I mean is to pay off your debts I guess you will need to save on expenditure. If you cut out luxuries ( cinema, eating out, takeaways,new clothes) and prune spending by taking pack lunches, walk short distances, take public transport rather than the car for a while, you will save money and be able to pay off the debt steadily and in the process save on the interest that you are currently paying. I'd say better short term pain than drawing out the whole process. Then you willbe able to save and hopefully the rate will have increased slightly. But don't hold your breathe. Good luck.

With the current interest rates so low for savers, it makes financial sense to pay off your debts first, starting with the biggest or most expensive debt. If it's at all possible for you, consider transferring your debts to a 0% balance transfer card so that you're not racking up more interest on your debts.

I agree with the general consensus to paying your debts off first if they relate to any outstanding credit card balances/loans. Throw whatever you can at them to try and reduce them in the quickest possible time within reason. Interest on savings accounts is low and at best if you tied your money up you may earn 5%. You are no doubt paying at least double that on your loans and credit cards, if not more.

Pay off your debts first, concentrating on the most expensive. Can you consolidate your debts into one?

Pay off your debts first. Any money in a savings account will earn a pittance compared to the interest you are being charged for debt. Plus paying debt off sooner means you can start saving quicker.

Pay your debts off first. However, try and save at least a little something at the same time as a 'just in case fund' so that you don't have to borrow further if you need money for anything that might come up. Don't worry about the interest you may or may not earn, it may save you from borrowing any further.