Wave Goodbye. Say Hello!
Goodbye debt, hello money! The first step in smart investing is getting out of debt. We're referring to credit cards and high-interest loans. Some of your credit cards may have interest rates of upwards of 25-30%. Even the best investments will have trouble just matching those numbers. Simply put, you’re losing money. This does not count low-interest loans such as school loans and the loan on your home, so don’t go selling your house—it’s considered an investment.
As you’re reducing your debt from high interest loans and credit cards, try calling the loan companies and credit card companies to request a lower interest rate. Sometimes they have special promotions they’re running, and sometimes they do it because you’re a good customer for them. Whatever the reason, you can get your interest rate lowered by more than 10% in some cases.
DID YOU KNOW? The interest accrued from school loans is tax deductable. Request yearly interest statements every January from your school loan companies and get some money back by claiming the interest on your taxes.