Since there are various types of debts, whether you should start saving or paying off debt depends on the type of debt you currently have.
Paying off high-interest debt, such as credit card debt or loans, should always be a priority over saving, as these types of debt can become quite costly in the long run.
You’ll typically want to tackle the debt with the highest interest rate first. Some exceptions apply, however. Major debts with stable interest rates, such as student loans, car loans, or a mortgage, can receive the minimum payment if you intend to save money and build an emergency fund.
Of course, having no debt at all is always the best scenario. But, if you’re looking to start saving some money, aim to save at least $1,000 towards your emergency fund. Once you’ve built an adequate safety net, you can return to paying any remaining debts.