Should I save/invest money or payoff my debt? I have been thinking about this over the last few weeks. You could look at the numbers and work which is best option but for me I favour clearing debt first before investing.

Good or bad credit (debt) affects many of us. If you are head over heels in bad debt the interest rate and money you pay back will be higher than your saving returns so the debt wipes out any savings you have. The obvious answer is to pay off any bad debt.

I’m happy with my good saving habits, I’ve watch it start at £0 and grow fast thanks to my extra business income. I’m also happy with my new found budgeting skills and can keep expenses down. I’m no financial expert but I have a plan and that is the most important thing. And when you have a plan you can adjust your plan to your needs as required.

From here I’m now going to suspend and slow down on my savings plan and focus on clearing off my student loan. I’m re-evaluating my master plan and my debt eats into my net worth big style. While it’s comforting having savings and I’m happy with the amounts saved but it hit me hard that my debt beats my savings down. I want my debt gone so the big push is to get all debt cleared faster.

Although you don’t start repaying any student loans until you graduate and hit the minimum income threshold. At the end of the road the student debt you amass needs to be paid back and interest is mounting from day one.

Making the minimum or slower student loan repayments will cost you more in the long term. Unless your plan is to wait for the debt to be written off in your 50’s or to put it bleakly you die before its all paid off. You may even die of fright when you look at a student loans financial figures in real terms.

I think my motivation to save isn’t as great as the new motivation to pay off debt. I did wonder if I should use my saving to pay some of the debt off. Then I kicked that thought out of my head because it would undone all my good saving habits.

Whatever choice you make it will affect your net worth. Anything that gets us closer to faster retirement is a good thing and been debt free will grant us freedom. When you make that last payment you’ll feel happier and debtless. Which is great.

My relationship with one credit card is finally over. Yesterday I made the final payment and closed the account. It was a happy day and an important milestone. I’d had that card for 5 years and it was generally maxed out for 4 and an half of that.

Not receiving any credit card statements and making any payments will feel strange after so long. It’s a strangeness that I can live without. It’s too easy to get reliant on using debt that you almost do it without thinking.

Need or want to buy something – out comes the credit card. Want to treat yourself and short of cash – out comes the credit card. This is the habit and bond you need to break. Your credit card isn’t doing you any flavours if you can’t clear the balance every month. If you’re in this position you need to fix it.

Now is the time to detach from using your credit cards and rid yourself of the hold they have on you. Clearing the debt balance will opens up new possibilities, for a start you’ll have more money and be happier without the burden.

Being closer to debt freedom is a great feeling. Tonight I’m going out to celebrate and the first round is on me.

I’m done with credit cards but not done with debt just yet. After the victory celebration there is still work to do and with every pound that’s paid off I sense that life will only get better.

Throwing money into your debt lifts the financial burden and makes money management so much easier. Bigger payments means it will happen faster. From here I intend to aggressively pay off my loans and keep shrinking my debt levels.

I want less debt and more wealth.