My timing belt on the outter Edge is showing.

My timing belt on the outter edge is showing signs of shredding. Should I replace it? The cover shows no indication that the belt is bouncing around, the belt is tight. I have a chilton manual for the kia, and it give pictures of what timing belts should start looking like when they are in need of replacement. My belt has not cracks, no seperations, no missing teeth. I also wanted to know if I absolutely have to replace the water pump at the same time? I just need to see what the least amount of money I will have to spend.