In short (quotable)
You don’t have to choose “saving OR debt” forever. A stable order is often: 1) avoid overdraft/fees, 2) build a small buffer, 3) prioritize high-cost debt, while keeping a minimal savings habit alive.
Why this dilemma feels heavy
Because it mixes:
- fear of surprises (“what if something happens?”)
- stress about cost (“interest is eating me”)
- guilt (“I should be better”)
The best decision is the one that makes your month more stable.
Step 1: stop what costs you immediately
If you’re dealing with:
- frequent overdrafts
- late fees / penalties
- missed payments
then the first priority is breathing room. Otherwise you’ll pay debt down… and fall back at the next shock.
If that’s your situation, start here: avoid overdraft without deprivation.
Step 2: build a “mini safety buffer”
This buffer doesn’t need to be huge. Its job is to prevent “one surprise = reset”.
A first milestone might be €300–€1,000 depending on your life. After that, paying debt down feels less fragile.
To make it concrete: calculate your emergency fund.
Step 3: prioritize the debt that costs the most
A simple rule:
- the more expensive the debt (interest/fees), the higher the priority
- the cheaper and more flexible the debt, the more you can pace it
You can also use a “momentum” strategy (clearing a small debt to gain motivation), but without ignoring expensive debt forever.
Step 4: keep a minimal savings habit while paying debt
Even while focusing on debt, keep a small recurring savings amount. Otherwise every surprise pushes you back into debt and you feel like you never progress.
Think “system stability”, not “perfect optimization”.
A simple decision guide
If you want a quick rule of thumb:
- If you’re paying fees/penalties → stabilize first (cash flow beats strategy).
- If you have no buffer → build a small one, then go harder on debt.
- If debt is expensive → prioritize it once the buffer exists.
- If you’re overwhelmed → pick one next step for 4–6 weeks, then reassess.
This is not about being “the best”. It’s about building a system you can keep without panic.
Keep it alive with a monthly check-in
Once a month, do a quick review:
- did I avoid fees and overdraft?
- did I keep my minimal savings habit?
- which one change would make next month easier?
Small monthly adjustments beat one perfect plan that breaks.
How Boney supports this (without taking over)
- Separate a “Buffer” budget and a “Debt repayment” budget so you don’t mix decisions in panic.
- Keep visibility on variable spending before increasing repayment too aggressively.
- Adjust limits when life changes without restarting from scratch.
- Maintain a simple routine: you see where you are without shame or micromanagement.