Clear all debts. About 5 years ago I was saving really well, but my debts were piling up. I then received charges and late payment fees on the debts, and in the end used my savings to clear some of these debts. This put me back to square one, if I used the money to clear the debts rather than saving I would have cleared them much quicker as the charges pile up quickly.
I am now debt free, apart from my mortgages and a loan with the bank. I have built up my credit score from 350 to 999 (The highest) and just got my second mortgage. It seems like a long slog, but it is from experience worth clearing debts before saving.