Should I pay off debt or save first?

Do both, but prioritize in this order: 1) keep paying every debt minimum on time, 2) build a small starter emergency fund, usually $500–$1,000 or one month of essential expenses, 3) attack high-interest debt, especially credit cards, 4) then build a fuller 3–6 month emergency fund while paying lower-interest debt on schedule.

If your debt interest rate is very high, roughly 15%+ APR, paying it down is usually the better financial return after you have a small cash buffer. If your debt is low-interest, such as many mortgages or some student loans, saving and investing may deserve more priority once your basic emergency fund is in place.

A practical split if you are unsure: put 70–80% of extra money toward high-interest debt and 20–30% toward savings until you have a starter emergency fund, then shift more toward debt payoff.