You Have $30,000 in Savings and $15,000 in Debt. What Should You Do With the Money?

A $30,000 savings balance does not automatically mean every dollar should go toward $15,000 of debt. Keeping an emergency cushion while targeting expensive debt can help protect against the next unexpected bill – Shutterstock

Finding yourself with $30,000 in savings and $15,000 in debt creates a strangely luxurious money problem: there is enough cash to make a serious dent in the debt, but wiping out the balance could leave the savings cushion looking awfully skinny.

The smartest move usually does not involve choosing one side and ignoring the other. Instead, look at the interest rate, the type of debt, your monthly expenses, job stability, and how much cash you would need if life decided to throw a financial banana peel into the hallway.