Mary Holm  Mary Holm is a personal finance columnist for the NZ
Herald.  Mary Holm: Cost of debt usually tops savings  The
desire for Christmas gifts could mean a compromise between
repayments and savings. Photo / Thinkstock  We arrived here in
New Zealand about seven years ago. We have a personal loan of
$18,000-plus, a timeshare and no credit card debt.  We have two
cars that are paid off. We intend to sell one for around $3000
and several surplus items of value as well, in order to pay off
debt.  Should we as a couple save some money for Christmas
expenses, etc, every month or just completely pay all extra
money on debt reduction?  It's a great idea to get rid of debt.
It puts you in a much stronger financial position.  When
deciding whether to save or repay loans, you should compare the
interest rate charged on the loans with the interest or other
returns you expect to make on your savings, after tax and any
fees.  In most cases - and probably in your case - the interest
on the debt is higher, so it's sma