| No, that's not a misprint. Even though falling interest | | | | account at 2% and paying anything over 2% on your |
| rates are good when you want to get a loan, they are | | | | debts you are sliding backwards financially and you'll |
| bad for people with savings accounts.In this economy | | | | never get ahead. It's basic mathematics.If you earn 20 |
| your best investment, the best place to put your | | | | bucks for five years in your savings account you'll |
| money is into paying off debts. Think of it as investing | | | | have $100. If you pay $190 in interest on your $1,000 |
| in your debt because that is exactly what you are | | | | credit card after five years you will have paid $950 in |
| doing.If you put $1,000 into a bank savings account | | | | interest charges.In other words you have wasted, lost, |
| earning 2%, at the end of a year you will have $1,020.If | | | | burned or flushed $850 by having a savings account. |
| you carry a $1,000 balance on a credit card with a | | | | ($950 - $100 = $850) OUCH!What can you do? Pay |
| 19% interest rate, and you pay the minimum monthly | | | | off that credit card and use that as your emergency |
| payments, at the end of one year you will have paid | | | | fund. It's not the best way to do it but it's better than |
| $190 in interest.If you get $1,000 in a tax refund, small | | | | earning 2% and paying anything over 2%.So, while the |
| inheritance or from somewhere else you now have a | | | | stock market is on it's roller coaster and the economy |
| choice to make. You can earn 20 bucks in a savings | | | | is challenged your best investment, bar none, is your |
| account or save $190 by paying off that credit card. | | | | debts! Get them paid off!Leo J. Quinn, Jr. owner of is a |
| Keep in mind that your 20 bucks is taxable income so | | | | financial educator from the Albany, NY area. For over |
| you'll be left with $15 or so after taxes.Do you need a | | | | eight years he has been helping thousands of people |
| savings account for emergencies? That savings | | | | get control of their finances and get out of debt in a |
| account may be causing those emergencies! Think | | | | fraction of the normal time. |
| about it this way...If you are earning money in a savings | | | | |