Saving vs. Paying Off Debt?

Both are necessary.

It's great that he's saved up so much money, but the more he saves and worries less about the debt, the more that debt is going to eat away at his credit and his finances.

He should take $5000 from savings and pay off the debt completely; it will save his credit history like crazy! He'll still have $3000 left for emergency fund, and he'll be able to build it up again no problem.

Either way, it's his life, and his decision. If he wants to be stupid about it, that's his choice, and there's nothing you can do or say to change his mind.

Makes no difference who is right. You are not going to convince your friend that the interest he pays on that credit card is more than he makes on that savings account.

Having an emergency fund and the flexibility of cash are good points. But carrying balances and paying interest on credit cards while you have a large amount of cash sitting in the bank is not very good financial management.

Look why do you care? Don't continue to argue about another person money.It is it money and debt so who cares..Either way he doesn't have 8K he has a net worth of approx. 3K because he owe 5K. I think that you should pay for your debt first, while saving but to each their own. A debt gathers more debt, the more you delay it, the more you will have to pay for it eventually. You may be broke but your are smarter than your friends

Take Care

He's a nincompoop with his finances.

That's all you need to know.

Maybe he thinks that credit card debt is good for credit?

Maybe he doesn't know that paying in full each month can get him top scores?

Find better friends. Sometimes friends can influence you in life.

Pay down the debt. It costs him more and more each month to hold on to it, he's basically burning money.