Why Paying Off Debt Can Be a Better Investment Than Saving

Saving money feels responsible. And it is. But when you’re still carrying high-interest debt, that savings might be costing you more than you think.

At Level Africa, this is one of the most common financial blind spots we see — and one of the easiest to correct once you understand the numbers.

The Trap of Saving While in Debt

Let’s say you’re earning 5% interest on your savings. That sounds good.

But if you have a loan charging 20% interest, your savings aren’t really helping — they’re losing ground every single month.

While you’re feeling good about your savings growing slowly, your debt is growing four times faster.

It’s Not About Choosing One Over the Other — It’s About Priority

We help clients understand that saving is only powerful after you’ve stopped the leaks.

If your money is being eroded by expensive loans, then your first “investment” isn’t in a product — it’s in eliminating that cost.

Once that’s done, savings and investing become far more effective.

What We Recommend at Level

We support clients in building the right sequence:

Pay off high-interest debt aggressively
Build a small emergency reserve
Then start investing in fixed income, bonds, or unit trusts

This order makes sure your effort works for you — not against you.

You’re Not Falling Behind — You’re Just Starting With the Right Step

Many people think if they’re not investing yet, they’re failing. But in reality, clearing debt may be the best-performing financial move you can make in the short term.

Debt-free is a powerful foundation. We help you build from there.

This Is One of Seven Core Principles We Teach

If this mindset shift was helpful, the full guide shares six others like it — built for people who want to grow steadily and intentionally.

How financially literate are you, really? These 7 lessons will tell you