debt: which would be better

Pay it off as soon as you can! You'll be better off without that debt following you around. Plus, good and steady payments will improve your credit score and with less debt and a better credit score the banks will give you a better home loan. You'll have plenty of time to build assets gradually. Of course, save money when you can.

I agree with roverroad. However, you could still put a small amount aside monthly or even quarterly to begin that asset building. For example, many mutual funds allow you to invest regularly with as little $50 a month or quarter. To me that is the best way-paying off as much as you can, while investing an additional portion. For future endeavors, like buying a home, you will have a low debt ratio and also have a history of consisting saving. Both will increase your credit rating. The higher your credit rating, the lower the interest rate a debtor will charge.