Understanding the workings of interest can mean the difference between retiring with nothing or retiring comfortably. More information on avoiding interest charges and investing can be found below!
The power of compound interest:
Find out the best ways to pay off debt here.
Banking and Debit/Credit Cards:
- Find a checking account that offers no fees and free on-line banking. Paying bills on-line is easy and automatic payments can help avoid late fees and a lower credit score. You can set it to notify you when your account gets low.
- If you have a credit card, pay it off every month. Otherwise interest compounds daily and it will add up fast. Carrying a large balance (over 50% of your credit limit) can hurt your credit score.
- CNN reports that in 2013 college students graduated with an average $ 3,000 in credit card debt. If you find that you charge more than you can pay off each month, then switching to a debit card or paying cash will help you live within your means.