FINANCE
How To Save Money
Clear Off Credit Cards And High-Interest Loans
Once you’ve established an emergency fund, the very next step is accumulating additional funds for savings and paying off any high-interest debt you may have. For the most part, this means credit card debt. Even on lower-interest credit cards, carrying large sums means you’ll be paying a lot of money in interest. So, if you’ve built up a six-month emergency fund, start paying down high-interest debt. When you’re paying 7 percent to 19 percent or more in interest on credit card debt, it doesn’t make sense to put money aside at a 4 percent or 5 percent return.
