Americans have a debt problem. The average American household has $90,336 in debt. ($5,517 of this is credit card debt, $7,871 is from auto loans, $9,153 from student loans, and $60,700 from mortgages). The average borrower owes 155% more than what they think they owe.
We also have a math problem. The average credit card interest rate is 17.55%. The average savings account interest rate is 0.06%. The expected return in the stock market is, depending on what time period you measure by, between 7% and 10%. Your credit card debt is costing you far more than your savings are earning you.
In addition to saving you money and giving you more cash flow and freedom to do what you want with your money, getting out of debt can help relieve stress and anxiety in your life.
Let’s take a look at the numbers and figure out the most efficient way to pay off your debt. Continue reading “How to Efficiently Pay Off Your Debt”