Should I pay off debt first or build up savings?

25 Sept 2026, 23:28
Q A Reader Asker

Should I pay off debt first or build up savings?

A Moaju Team Answered by

A common approach is to keep a small, accessible emergency fund while making at least the required payments on all debts. After that, prioritising debt with a higher interest cost than your savings return may reduce the overall cost, although the best order depends on your income, stability, debt terms and goals. Check for early repayment charges and consider whether your savings are needed for upcoming expenses. If you are struggling with repayments, MABS can provide free, impartial guidance.

This Q&A is editorial content produced by the Moaju team. It does not guarantee any individual outcome.
Q&A Contact