Daily Investment Tips

The best thing you can do to improve your financial health is eliminate high-interest debt. To Get out of debt, try to use any bonus, raise or tax refund to pay off credit cards in full. Even adding a few hundred dollars to your payments can make a huge difference in your plan to get out of debt, especially if you can get your credit card company to lower your rate.

Get Out of Debt Example

If your minimum payment is 4 percent of your debt, a $5,000 balance with an 18 percent interest rate would start with a $200 monthly payment, which would take 32 months to pay off and cost $1,314 in interest. If you pay $500 per month on a 5 percent card, you’ll cut your interest charges to $118 and pay off the balance in just 11 months. ..How does this simplify your life?

Once you’re out of debt, you won’t have to juggle minimum payments, and you’ll save a ton in interest, which frees up extra cash to reach the rest of your financial goals.

written by Constantine Njeru \\ tags: Bonus, Credit Card Company, Credit Cards, Debt Advice, Eliminate Debt, Extra Cash, Financial Goals, Financial Health, High Interest, Interest Charges, Interest Debt, Interest Rate, Minimum Payment, Minimum Payments, Reach Goals, Tax Refund