Core Insights - The article addresses the common dilemma of whether to prioritize paying off debt or saving for retirement, particularly in the context of rising household debt and insufficient retirement savings in the U.S. [3] Group 1: Debt and Retirement Savings - Total household debt in the U.S. reached $18.39 trillion in Q2 2025, highlighting the financial pressures many Americans face [3] - A general guideline suggests contributing 10%-15% of income to retirement funds while managing debt, which is deemed necessary for retiring on time, typically by age 65 [4] - Financial situations vary significantly, and the 10%-15% guideline serves as a starting point rather than a one-size-fits-all solution [4] Group 2: Budgeting and Debt Management - The first step in addressing financial concerns is to analyze the budget to identify cash flow for debt repayment [5] - Debt is categorized into "bad debt" and "traditional debt," with the latter including mortgages and student loans, which generally have lower interest rates [5][6] - The financial planner advises against labeling any debt as "good," as all debt can hinder financial progress if not managed properly [5]