Are you free from debt? One of the most important keys to build wealth is to get rid of your bad debt. Having debt means it can get pretty tough to be financially free. It will be even tougher if the interest rate of your debt is high.
I’m not implying that you can’t have debt. Some debts like car loan or mortgages can’t really be help. But the interest rate to this kind of debt will not really kill you.
Credit card debt is mostly has the most impact in your journey in building wealth. 24% interest rate per year is going to set you back pretty bad in your wealth building process. If you own the credit card company $5,000, just the interest alone will cost you $100 monthly. The credit card company is just making your $100 monthly by doing nothing. Is this worth it?
If you are without this credit card debt, you will have $100 extra every month to invest to grow your retirement nest. Faithfully invest this $100 monthly, in 20 years time, you could have a substantial amount for your retirement.
If you are in any form of debt or looking for better interest rate on mortgages, you may want to visit debt management.
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