Debt vs. Savings: What Comes First?
You’ve got a personal loan EMI, a credit card balance, and barely any savings in your account.
So now the big question hits:
Should you pay off your debt first—or start saving first?
The answer? Both—but with strategy.
At Vizzve, we believe in balance, not burnout.
🧠 The Case for Paying Off Debt First
High-interest debt—like credit cards—can silently kill your financial health.
Why prioritizing debt makes sense:
💸 Interest eats your income: 36–42% APR on credit cards is brutal
😰 Stress relief: No EMI = more peace of mind
📈 Improved credit score: Less debt = higher creditworthiness
🔄 Break the debt cycle: Minimum payments trap you forever
Focus on:
High-interest debt (credit cards, payday loans)
Loans with penalties for late payments
Short-term, small-ticket loans
💰 The Case for Saving First
Now here’s the twist:
If you don’t have savings, you’ll go back into debt the moment a crisis hits.
Why building savings matters:
🏥 Unexpected expenses happen (medical, job loss)
🧘 Emergency fund = freedom from panic
🏦 Building even ₹500/month builds habit and safety net
💳 You avoid taking more debt during emergencies
Vizzve’s Balanced Strategy: Save While You Repay
You don’t have to choose only one.
Here’s the smart approach we recommend:
1. 🎯 List All Debts and Rates
Use Vizzve to track every loan, EMI, or card balance.
Sort by interest rate and urgency.
2. 💸 Minimum Payments + Extra EMI
Pay minimum dues on all, but throw extra ₹ on the highest-interest loan.
3. 🪙 Start a Micro-Savings Habit
Save just ₹20–₹100/day using Vizzve’s auto-saver.
In 3 months, you’ll have a small emergency fund—without feeling the pinch.
4. 🔁 Use Windfalls Smartly
Got a bonus or Diwali gift?
Split it: 50% for debt, 30% for savings, 20% for guilt-free joy.
💼 How Vizzve Finance Helps You Balance Both
We don’t believe in either/or. We believe in realistic finance for real people.
With Vizzve, You Get:
✅ Debt tracker with due date alerts
✅ Interest vs. urgency prioritization
✅ Micro-savings tools to build buffers
✅ Micro-credit (safer than credit cards)
✅ Personalized repayment and savings tips
FAQs
Q1: What if my debt is too overwhelming?
Start small. Vizzve helps break it into manageable chunks, plus offers micro-credit to help bridge shortfalls without stress.
Q2: I earn just enough to pay bills. How can I save?
Even ₹20/day adds up. With automated rounding-up and Vizzve nudges, you can build savings without noticing.
Q3: Isn’t saving pointless while in debt?
Not at all. Small savings prevent future debt during emergencies—so both go hand-in-hand.
Final Thoughts
Debt doesn’t have to mean despair.
And saving doesn’t have to wait forever.
With Vizzve, you can do both wisely—because we believe that your wallet and your peace of mind deserve equal priority.
Published on : 8th July
Published by : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed.