Whatever You Do....Dont Save Money!

Home
>
Debt Relief
>
Whatever You Do....Dont Save Money!

Whatever You Do....Dont Save Money!

No, that's not a misprint. Even though falling interest rates are good when you want to get a loan, they are bad for people with savings accounts.

In this economy your best investment, the best place to put your money is into paying off debts. Think of it as investing in your debt because that is exactly what you are doing.

If you put $1,000 into a bank savings account earning 2%, at the end of a year you will have $1,020.

If you carry a $1,000 balance on a credit card with a 19% interest rate, and you pay the minimum monthly payments, at the end of one year you will have paid $190 in interest.

If you get $1,000 in a tax refund, small inheritance or from somewhere else you now have a choice to make. You can earn 20 bucks in a savings account or save $190 by paying off that credit card. Keep in mind that your 20 bucks is taxable income so you'll be left with $15 or so after taxes.

Do you need a savings account for emergencies? That savings account may be causing those emergencies! Think about it this way...

If you are earning money in a savings account at 2% and paying anything over 2% on your debts you are sliding backwards financially and you'll never get ahead. It's basic mathematics.

If you earn 20 bucks for five years in your savings account you'll have $100. If you pay $190 in interest on your $1,000 credit card after five years you will have paid $950 in interest charges.

In other words you have wasted, lost, burned or flushed $850 by having a savings account. ($950 - $100 = $850) OUCH!

What can you do? Pay off that credit card and use that as your emergency fund. It's not the best way to do it but it's better than earning 2% and paying anything over 2%.

So, while the stock market is on it's roller coaster and the economy is challenged your best investment, bar none, is your debts! Get them paid off!

Leo J. Quinn, Jr. owner of http://www.LeoQuinn.com is a financial educator from the Albany, NY area. For over eight years he has been helping thousands of people get control of their finances and get out of debt in a fraction of the normal time. He has a special offer for readers of this newsletter at http://www.1shoppingcart.com/app/adt rack.asp?AdID=132551

In The News:

Country's External Debt Doubles
AllAfrica.com
By Sebastian Mrindoko, 23 May 2012 TANZANIA'S external debt has more than doubled to 9.78bn US dollars (about 15.6tr/-) when compared to the 4.45bn US dollars (about 7.12tr/-) recorded soon after implementation of Multilateral Debt Relief Initiative ...

and more »

Debt Consolidation Site Introduces New Small Business Debt Solutions
Empowered News (press release)
A debt consolidation website provides an advantage to budding or old small businesses through small business debt relief solution. Adriana Spears directs you to a website where you could find help in solving your debt problems.
Credit Counseling Site Announces Its Debt Settlement Service As One of the ...PR Web (press release)

all 4 news articles »

Govt Awaits Oil Revenue Amid External Debt Rise Loom
AllAfrica.com
By Samuel Sanya, 22 May 2012 There are many reasons as to why Uganda needs to quicken the commercial production of oil, but top on the list is the reduction in donor aid and the faster walk out of debt. Uganda's external debt has grown steadily from ...

and more »

Publisher seeks relief from debt
Boston.com
Houghton Mifflin Harcourt filed for bankruptcy protection Monday as part of a deal with its creditors to eliminate $3.1 billion in debt, and the Boston-based publishing giant said the restructuring will allow it to invest in new ventures.

and more »

DebtConsolidation.com Helps Over 100000 Consumers Choose the Best Debt ...
MarketWatch (press release)
NEW YORK, NY, May 21, 2012 (MARKETWIRE via COMTEX) -- DebtConsolidation.com, the top-ranking debt consolidation company, today announced that the company, in conjunction with quality debt relief companies, has helped over 100000 consumers deal ...
Will consumers take on personal credit card debt to make business purchases?Debtmerica Relief
Growing Blog by Mel Thompson Is for Consumers Looking for Relief from Debt ...SBWire (press release)

all 6 news articles »

Bloomberg
Euro Falls to 22-Month Low After EU Leaders Clash on Debt Sales
San Francisco Chronicle
May 24 (Bloomberg) -- The euro fell to the weakest level since July 2010 against the dollar after European leaders clashed over joint bond sales at a summit and offered no immediate relief for recession-wracked Spain. Europe's 17-nation currency ...
German Bonds Decline After EU Leaders Summit as GDP Expands 0.5%Bloomberg
European shares up; China growth hopes boost miners, autosReuters

all 226 news articles »

Guest opinion: Mortgage Debt Relief Act of 2007 to expire; act now
The News-Press
Homeowners faced with the loss of their home need to take positive steps to avoid severe income tax liability due to the looming expiration of the Mortgage Debt Relief Act of 2007. The MDRA was enacted with bipartisan support and signed into law by ...

Maryland offers tax relief on debt forgiveness
Baltimore Sun (blog)
Maryland will step in with its own relief if the federal tax break disappears. Under legislation signed into law yesterday, Maryland won't collect state income tax on up to $1 million of forgiven mortgage debt for singles, and $2 million for joint ...

Women, Children and the Challenges Debt Presents
PR Web (press release)
The providers of CareOne Debt Relief Services, thought leaders in the debt relief industry, recently published an infographic exploring recent trends for women with children in debt. There is a need for financial education for women dealing with ...

and more »

Mortgage Relief – Without the Catch
Politic365
Are you one of those people who got excited to hear about the Department of Treasury's plan to forgive a portion of Freddie and Fannie Mae homeowner debt? Then you were beat with disbelief when you realized to qualify you had to be current on your your ...

and more »

Google News