30K debt, should I still save money?

With $2,460 remaining each month, you have solid room to make both debt repayments and set up a small savings cushion. Here’s a specific plan that could help balance debt reduction with building emergency savings:

  1. Focus on High-Interest Debt First:

    • Since the personal loan has a 14% interest rate and the credit card is at 12.99%, it’s costing you a lot in interest. Allocating $1,200 toward the personal loan each month and $800 to the credit card would make a meaningful dent while reducing the highest-cost debt first.
    • This approach accelerates repayment on the loan with the highest interest, saving you money over time.

  2. Emergency Savings:

    • Saving is important, especially to avoid more debt for unexpected expenses. Set aside $250–$300 each month into a high-yield savings account. In 6–8 months, you’ll have an emergency fund of $1,500–$2,400, which is enough to cover 1-2 months of essential expenses. Once your high-interest debt is under control, you can increase this amount.

  3. Adjust as You Pay Down Debt:

    • As your personal loan balance lowers, shift more payments to the credit card. This “snowball” method will help you focus on each debt in succession and give you some psychological wins as balances start to disappear.

  4. Evaluate Your Monthly Expenses:

    • If possible, cut down some non-essential expenses temporarily to boost savings or debt repayments. For instance, consider pausing subscriptions like Prime Membership and see if your phone bill can be further reduced sooner.

  5. Future Goals:

    • Once high-interest debt is paid off, increase your savings contributions or consider an investment account to start building long-term wealth.