Posted on 12 January 2010
By Mark Miller
Debt reduction is a critical strategy for building retirement security, and credit cards should be enemy number one in your battle plan, with mortgages running a close second. In retirement, you’ll likely be on a fixed income and face pressure to keep pace with rising costs, and debt-related interest expense just adds to the challenge.
If you have free cash available, paying off a card balance is a no-brainer. Variable rate credit cards carry an average rate of 11.7 percent and often range much higher. Money market and savings accounts are paying next to nothing these days, which means you earn a far better return on your cash by getting rid of a credit card balance.
This week, Manisha Thakor offers tips on how to deal with three common credit card problems.