Earn 18% Guaranteed

 

              By The Financial Literacy Center

 

              Want to earn 18% on your money? Then you must reduce your debt. It takes a 25% return

              before taxes to equal the "savings" from repaying an 18% credit card. Here are five ways to

              repay debt quickly:

 

              • Transfer your balance to a low-rate credit card. Future payments include more principal

              and less interest.

 

              • Tap your savings. Why leave a balance on an 18% credit card if you have money in a 3%

              savings account that can be used to pay off the credit card balance.

 

              • Accelerate repayment. When a debt is repaid, add its monthly payment to another,

              starting with the highest-interest-rate debt first. This reduces the time required to repay

              remaining debts - and the total interest charged.

 

              • Consider consolidation. Combine several high-interest credit card balances into one

              lower-rate loan. Just don't run up your balances again, or you'll have both a loan and credit

              cards to repay.

 

              • Negotiate a discount. Many credit card issuers will reduce fees or interest rates when

              asked. Call them. The less interest you're charged, the faster you'll climb out of debt.

 

              Reprinted with permission of The Financial Literacy Center, Kalamazoo, Michigan, (616)

              343-0770.