Want to earn at least 20% on your money? Here's a guaranteed way how to: get out of credit card debt. Here are some great thoughts, ones that I agree with 100%, from Yahoo on this subject:
It's awful to be saddled with credit card debt. But you're not alone. A big chunk of America is struggling under the crushing load of credit card debt -- and "crushing" is a rather appropriate word, given that many of us are being socked with interest rates above 30%.
There's a small silver lining to this massive cloud: every dollar of debt you pay off will save you a lot in interest payments you won't have to make on it. For example, if your credit card's interest rate is 25%, by paying off $2000 of debt, you'll save yourself from having to pay $500 in interest on it -- this year, and next year, and the year after. That's sort of like earning $500, or 25%, this year and in the following years.
And if you think that I'm exaggerating by using rates as high as 25%, think again. As I noted in an earlier article, the average default interest rate (the rate you pay if you miss a monthly payment) for credit cards was about 30% in 2004, with many rates now in the 35% territory.
I hate debt and am glad I have none. But if you have some debt, please realize that paying it off is a guaranteed investment -- it's money that you're "earning" by not having to pay it later to service your debt. And with savings yields currently being around 5% and the stock market in a seeming plateau, getting rid of debt costing you 10%, 15%, 20% or more is a great deal.
For some specifics on how to get out of debt, see these links: