Think of them like leopard print leggings and just get rid of them.

So, was chatting with a friend of mine who is better with money than Zac Efron is with eyebrows, and, as I do, was hounding him for ways to make me rich. And after doing what he always does, which is to roll his eyes and tell me to stop taking cabs to the closest subway station and recognize my shopping problem, he actually gave me a pretty good tip.

So for those of you who have student loans, or credit card debt, etc., consider the following…

While it’s tempting to throw any ‘extra’ money you make into a savings account, remember that any debt you’ve got is accumulating interest at a much higher rate than your savings account.� This is especially true now, when banks are paying close to 0% on all but long-term deposits, but credit card interest rates can be 20% or higher (are you kidding me?) So, tempting as it may be to make just that minimum payment, it makes sense to focus more of your money on getting rid of your debts instead of� putting it all into savings. If I’m understanding this correctly, you’ll end up having more savings sooner, than if you save now and pay ever-growing debts later.

Makes Cents (0)

This entry was posted on Thursday, March 5th, 2009 at 4:30 pm and is filed under Money. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Tags: Credit Cards, Debt Management, Recession, Recessionista, Savings, Screw You Recession, Student Loans