Sometimes, you have no choice but to make some big decisions.

It can be buying a house, getting married, planning for a baby, switching a job, taking out a loan, paying off debts, and so on.

A big financial decision can affect other members of your family.

To make the difficult financial decision easily, you have to think about its effect on others around you.

Therefore, sometimes, making the decision becomes harder. In this kind of situation, you have to be cautious, too.

Here are some crucial financial choices that often create dilemma among people:

1 Paying off debt or saving money/ building an emergency fund/ saving for a retirement

Deciding a subject like "Should I pay off debt or save" isn't easy; there are many factors to decide how to prioritize.

For example, if your debt is costing you more than your total income, then you should pay off the debt first. If you are paying more on the interest than earning an interest on the saving, then you are actually losing money.

If you have a high-interest consumer debt (credit card debt, payday loans), then you should pay it off first. Otherwise, you will not be able to manage your finances.

They may have a low-interest rate and tax-deductible interest. So, making the monthly payments make sense.

Melissa Joy, CFP professional, partner and director of wealth management at the Center for Financial Planning in Southfield, Michigan has said, “If you don’t have any savings, focusing solely on paying debt can backfire when unexpected needs or costs come up. You might need to borrow again, and debt can become a revolving door,”

As per the financial experts, it is advisable to keep an emergency fund on which you can manage expenses of about three to six months.

Therefore, you should contribute enough money to the 401(k) to get the maximum employer match.

2 What to consider: Buy or rent

Before making the choice, ask yourself, " Am I financially prepared to buy a home?"

You have to make a big down payment, and your lender will check your credit history before lending you money.

Thus, you have to work on your financial readiness before making such a big financial decision. Thus, for the time being, renting can be a better option than buying a home.

Homeownership is a pride and necessary to start a family. However, you have to make yourself financially prepared for that.

A lot of people are under pressure; their family wants them to buy a home.

By doing so, your family or partner may feel delighted, but soon you may fall into tremendous financial pressure.

Thus, it is important to examine your needs and wants thoroughly. Talk to your spouse, partner or family about your financial ability, priority, and goals.

3 What to use - A debit card or a credit card

The shortest and simplest answer is - use a credit card, but make sure you are able to pay off the bill in full within the stipulated time.

Credit cards are not only convenient financial weapons, but also help to manage the spending well. How?

You just need to allot a credit card for the definite monthly expenses such as grocery shopping; however, make sure you pay off the entire balance every month.

By using credit cards, you may also enjoy the cash back rewards from your favorite store.

In addition to this, they offer fraud protection, identity theft protection, and purchase protection, to the consumers.

Moreover, consumers can get additional benefits like rebate, discounts, cash back, by using reward credit cards.

I have already mentioned that consumer debts come with higher interest rate. Once you fall into credit card debts, it will cost you dearly on the interest rate. Thus, it is advisable to use a debit card or cash if you are not financially ready to take the responsibility of a credit card.

Using a debit or cash helps you to know when to stop. When you are using a debit card, you have to spend money staying within your means.

Thus, they will not fall into costly credit card debt while building a credit history.

1 Set goals and give yourself deadlines

Some people delay the plan just because to avoid complications. But, when it comes to a dilemma like "paying off debt or saving money" you shouldn't delay in making the decision, otherwise, you may be in financial trouble shortly.