It never ceases to amaze me when people opt to put their money into their basic savings account rather than using the funds to clear debt. I am not sure if this is for financial security or just that people in general like to have savings, just to have savings. I have come across several individuals in the past who have credit card debts and are only to happy to allocate a portion of their pay cheque to make the minimum payment and the rest of the funds into their standard savings account. I mean sure, if you save the funds in your savings account, you may generate £1, £2, £10 in interest - but you’re losing £20, £40, £200 in interest in your credit card - and then some. If these funds were used to clear the credit card debt then it would effectively make 20 x + more money. It seems like a no brainer, but people seldom realise this.
What I am saying, is know when to save and know when to clear debts. If you have the money tied up in your savings accounts to clear your credit card and still have financial security, then do it. There is no point paying your credit card hundreds of pounds each month for nothing if you can afford not to afterall. I think it all comes down to the fact that when people get credit card debt, particularly when they max it out, they almost subconsciously switch off, forget about it and just let the month to month minimum payments come out. Turing a blind eye to debt and financial problems is a huge mistake and can often lead to uncontrollable debt later.