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Saving(s) Grace: The battle between your money and your debt is a hotly contested one

It's the classic case of the immovable object versus the irresistible force. In one corner, it's your entire savings account, every penny you've saved throughout years of scrimping, saving and working hard. And, in the other corner, your massive amount of debt.
This grudge match inevitably comes to a crescendo, and you are left with the unenviable task of refereeing this showdown and asking yourself an imperative question in the midst of this back and forth action.
Should you spend your savings to pay off your debt?
The initial answer seems obvious; if you have the money and you care at all about your credit and debt to income ratio, then you should undoubtedly take what cash you have on hand and pay off your creditors in full.
The natural argument to that practice is a practical one. Your savings account is money you've saved specifically for that rainy day, so what do you do in the case of an emergency, if you don't have any money set aside? That question presents the proverbial "Catch 22" if something unforeseen should pop up, and you're left with no extra money on hand and having to use a credit card for that new fridge, washing machine or hole in the roof.

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And then, you're right back where you started.
Rather than make a flat out, black and white decision, the answer to this debate doesn't necessarily have to be matter of fact. You'd be hard pressed to find someone who has $5,000 saved and $5,000 of debt willing to hand over all of his money to a creditor debt collector, even if that means they have a clean credit slate.
The best avenue isn't an either or scenario but rather formulating a budget and sticking to it. That means taking a closer look at your total income per month and putting aside more than just a minimum payment for a credit card and really taking a hard nosed look at your debt, and determining how to get it paid off over time.
One of the bigger mistakes you can make is attempting to pay off debt quickly when it isn't feasible, such as spending all of your savings account in one fell swoop. A large amount of debt and getting it paid down to zero is comparable to trying to lose weight.
The debt, much like weight you gain, didn't happen overnight and probably took you years to collect. So what makes you think you can pay off years of debt in a few months? Is it realistic to gain 100 pounds over five years and expect to lose that same amount in a few weeks?
Probably not. So why should you expect the same result when it comes to your finances and debt?
Your best bet is to stick to a game plan that is executed over time and one that will heed results in due time.

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