Save or pay your debts - which is best?

Jo Robinson

Anthony Devlin / PA

With inflation so high and savings rates dismally low, it's pretty hard to find a savings account which is actually going to give you any kind of return for your money or even keep up with inflation. In effect that means you are losing money over time as your spending power is eroded.

It might surprise you to know though, that if you have debts to pay off you're likely to be better off by paying them than putting the money in a savings account.