Debt to savings ratio - sensible advice needed

[overthinkersanonnymus]

What's an ideal amount for both?

I currently have (near enough to the penny) the same amount in savings as I do in unsecured debt. A couple of credit cards and a loan with 6 months left on it.

The thought of clearing my full savings to be debt free gives me anxiety so I just wanted to hear what would be your sensible approach?

I think it all depends on how much debt you're talking about, the monthly payments and the interest rates you're paying. If you had £1000 on a credit card and a £1000 in savings, I'd just keep chipping away at the debt. But if we're talking £25k/25k, then it would make sense to clear it and use the monthly payment to start rapidly building up your savings again.

Thanks @mushroomsinplantpots that's really helpful x

You need to look at interest rates. If you're making 4% on your savings and have debt on a 0% credit card then having savings is better. If you're making 1.5% on the savings and are paying 6% on a loan then pay off at least some of the loan - just make sure you keep some back for emergencies.

You'd get some more specific advice if you posted the interest rates and amounts. Or at least draw all the figures together for your own information if you don't want to post them publicly. Plus how much money you have available each month to pay down the debts / add to savings.

I'd keep 2k emergency fund then get rid of the debt, paying minimum month repayments on all then plough all leftover money into getting rid of the smallest first.

(Snow ball method) other state highest interest or largest debt first so there is a few approaches I like this one because you can really ramp up those saving quickly so it's motivating .