Paying down debt or building savings
If you have extra money each month, you can put it toward debt, into savings, or some of each. Debt charges you interest and savings earns it, so the rates matter. Savings can also help when something unexpected happens, so the cost doesn't go back on your debt.
There is no single right answer. This tool shows what can happen, and the choice is yours.
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What could happen
| Where the extra goes | Debt paid off in | Interest you pay | Savings |
|---|---|---|---|
| All to debt | — | — | — |
| Half and half | — | — | — |
| All to savings | — | — | — |
About these numbers
The table only shows money. It can't show how it feels to have a cushion, or what else a surprise bill could lead to, such as late fees.
This is an estimate, and it assumes:
- Your rates and payments stay the same.
- You don't borrow more, apart from any part of the surprise that savings can't cover.
- Once the debt is gone, all the money you were paying toward it goes into savings.
- The minimum payment doesn't change. On many credit cards it falls as the balance falls.
The starting rates are national averages, so yours may be higher or lower. Some savings accounts pay more than the average.
Source: Federal Reserve, Consumer Credit G.19, credit card accounts assessed interest, August 2026. Last checked November 2, 2026.
Source: FDIC, national rate for savings accounts, October 19, 2026. Last checked November 2, 2026.