This really depends on a few different things, but the type of debt you have and the interest rate you’re being charged are two major factors. Any HMRC or council tax debt must be prioritised over and above all else, because the consequences of not paying can be severe – including custodial sentences in extreme cases.

Consumer debt, like credit cards, personal loans and finance are lower priority, but it may still be worth using any disposable income to chip away at debt that has a high APR, because you will be paying far more in interest on your debt than you could possibly earn as interest on your savings.

Compare the best rate that you can get on your savings with the highest rate of interest on your debt, and this will give you an indication of what could be the best decisions.

Another thing to take into account, though, is your peace of mind. If your debt is causing you stress and worry, it could be that you will benefit more from having paid it off, while if a lack of financial safety net is making you anxious, it might be wise to build a small emergency fund before concentrating on clearing your debt.