9 Tips to Retire With Wealth If You Make Under $50,000
7) Avoid Credit Card Interest Payments
The interest charged for carrying a credit card balance is extraordinarily high. You will typically have to pay as much as 15, 20, or 25 percent. If you miss a payment, by even a day, that rate can zoom up to closer to 30 percent. To put that into perspective, think of it this way. At a rate of 25 percent, the amount you owe can practically double within just four short years. It is easy to see how paying interest on credit card debt can destroy your chances of saving for retirement. On the other hand, if you pay your credit card balances off each month, they are a convenient financial tool. Credit cards are great, as long as you use them prudently and carefully. There are even some credit card rewards programs that let you use your accumulated rewards to fund a retirement account. Beware of paying high interest on any kind of consumer debt. Since credit cards charge more than most kinds of borrowing, be particularly careful with them. That will do wonders for your finances – and the health of your retirement nest egg.