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Credit Card DebtWe know that two-thirds of those who have filed for bankruptcy attribute the main cause of their financial problems to credit cards. Now, let’s say you have credit card debt. If you’re like most, you interest rate is probably in the ballpark of around 15%. That means that you’ll pay nearly $2,000 in interest on a $5,000 credit card over a 55 month period. Folks, if you’ve racked up some bills on your credit card, consider making a concerted effort to help eliminate some of that debt. You see, by eliminating that debt, you’ll have more capital to put into retirement.

Experts recommend that you give your retirement fund a raise every year by increasing your contribution to at least one to two percent. This is a relatively painless way to build up a retirement fund over time. Take an employee who’s making about $75,000 a year and paying for retirement. 2% would add up to about $125 more take home pay per week. So, what should he do with it? If he contributed the entire $125 per week for the next 25 years at an interest rate of, oh, let’s say 5%, it would accumulate to about $74,000 – a nice addition to any retirement fund.

If the employee in the above example had credit card debt, though, he’d be better off contributing that 2% each week to paying down the balance. You see, the retirement fund is only collecting 5% each year while a credit card is costing you nearly 15% of the balance each year. It just doesn’t make sense to let all that debt hang around when you can do something about it and potentially save yourself thousands of dollars in interest charges. Even if you’re able to transfer the balance to a card with a lower interest rate, you’ll still want to focus on clearing that balance away. Why make the credit card company richer when you don’t have to?

Let’s discuss where you are financially and how I can help you “avoid cracking your nest egg”. Contact me at (866)471-7233 for a no-obligation, free consultation.