During the current economic crisis, many people find themselves wondering whether it is more important to pay down debt versus building up a savings account balance. Some of the top financial experts are recommending that people build up their savings versus paying down debt. Suze Orman recently recommended that people build up their savings and pay the minimum balance on credit cards. Does this make any sense to you? Well, let’s look at it from another viewpoint. Credit Card companies have changed many of their terms without notifying card holders. Some are reducing credit limits and even canceling accounts. Many people believe that they should pay the credit card debt. Then in case of an emergency, they can use the balance remaining on the credit card. During this current recession, you can’t really depend on credit cards any more. And that’s why it is recommended that you save first and then pay the minimum on your credit card balance. See the link below for Suze’s expert advice.
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