I should say yes! For the past year, I have been in and out of debt – albeit small credit card debt – but I have been able to save, even just a tiny amount. How can you do this, too?

First of all, remember that not all debt is bad and that you are not forced to pay everything in one go. For example, I have a salary loan that I am paying off every month – and will do so for the next 10 months. To be honest, I can pay more into it but then that would mean spending most of my pay on paying it off. The interest rate is fixed so it doesn’t matter if I pay it all off now or every month in staggered amounts. So I choose to do the latter and use some of the remaining money to put into my savings account.

Another thing to do would be to settle credit card debt. I don’t mean pay it off immediately – this would be impossible in some cases. What I am thinking of is to find a debt consolidation service or some other sort of arrangement wherein you would have to pay lower interest rates. This way, even if you had to spend years paying off your credit card debt, you wouldn’t be paying too much for interest and the extra money you save could go to your savings account.

Saving is a matter of choice and proper management. Just because you have debt doesn’t mean that you cannot set aside even a small amount for your savings.

This entry was posted on Tuesday, January 1st, 2008 at 8:45 am and is filed under Debt, Budgeting, Saving, Credit Cards, Personal Finance, Advice . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.